HSBC expects CHF to rise, saying CHF shorts “look tired” and CHF is holding up:
- resilience is likely due to geopolitical tensions
- with continued uncertainties, the CHF may remain supported as a “safe haven”
As for the pound, HSBC analysts expect a rate cut from the Bank of England despite persistently high services inflation and wage growth. And see the possibilities of further rate cuts:
“The BoE meeting in May could be an important step for possible easing in June”
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HSBC’s idea is to sell GBP/CHF at 1.1350
- objective 1.1000
On Tuesday, Pill gave the pound a leg up to the level HSBC is looking to sell to:
- BoE pill: the time for a rate cut is still far away
- The BoE pill says it sees signs of a decline in the persistence of inflation
- Haskel (BOE): High inflation will persist unless the labor market weakens
This article was written by Eamonn Sheridan at www.forexlive.com.
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