HSBC is looking for the CHF to rise, saying CHF shorts “look weary”, and the CHF is resilient:
- resilience is likely due to geopolitical tensions
- with uncertainties lingering, CHF can stay supported on a ‘safe haven’ basis
As for the GBP side, analysts at HSBC are looking for a Bank of England rate cut despite high and sticky services inflation, and wage growth. And see scope for further rate cuts:
“May BoE meeting could be an important stage-setter for a possible June easing”
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HSBC idea is to sell GBP/CHF at 1.1350
- target 1.1000
On Tuesday, Pill gave GBP a leg up to that level HSBC is looking to short at:
- BOE’s Pill: The timing for a rate cut is still some way off
- BOE’s Pill says seeing signs of a downward shift in inflation persistency
- BOE’s Haskel: High inflation to remain unless labour market weakens
This article was written by Eamonn Sheridan at www.forexlive.com.
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