Political risks and BOE outlook – DBS
WikiBit 2026-02-06 15:39
GBP/USD suffered a double whammy, tumbling by 0.8% to 1.3550 overnight. The market significantly increased bets that the Bank of England would cut the
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Political risks and BOE outlook – DBS
GBP/USD suffered a double whammy, tumbling by 0.8% to 1.3550 overnight. The market significantly increased bets that the Bank of England would cut the bank rate by 25 bps at the next March meeting. Additionally, GBPs political risk premium has increased significantly amid a political crisis for Prime Minister Keir Starmer, notes Philip Wee, Senior FX Strategist at DBS.
GBP/USD declines amid political turmoil
“GBP/USD suffered a double whammy, tumbling by 0.8% to 1.3550 overnight.”
“First, the market significantly increased bets, from 18.6% to 61%, that the Bank of England would cut the bank rate by 25 bps cut at the next March 19 meeting.”
“Second, GBPs political risk premium has increased significantly.”
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