We recently noticed that some third-party companies and individuals impersonated the TOPONE Markets brand and illegally misappropriated our trademarks.

We Hereby Reiterate Our Statement:

  • TOPONE Markets does not provide discretionary account operation trading services, nor does it cooperate with other third-party vendors and/ or agents to provide such services.
  • TOPONE Markets staff will not promise to our customer the definite profit, please do not trust any kind of the profit promise or profit related picture, such as screenshot/ chat history, etc, all investment profit can be only viewed on our official website and application.
  • TOPONE Markets is a professional online trading platform with low spreads and zero handling fees. Be wary of any behavior that asks you for any fees directly and privately. TOPONE Markets does not charge a fee at any stage of its trading process or other fee.

If you have any questions or concerns, please feel free to reach us by clicking the "Online Customer Support" or send an email to our customer care team cs@top1markets.com. We will answer your questions and assist you promptly.

Understood
We use cookies to learn more about how you use our website and what we can improve. Continue to use our website by clicking "Accept". Details
Market News Goldman Sachs is optimistic and HSBC is cautious.

Goldman Sachs is optimistic and HSBC is cautious.

Facing the future prospects of the pound sterling, there are many differences among investment banks. Goldman Sachs analysts said they believe that there are upside risks to UK interest rates and the pound expectations, because the Bank of England may raise interest rates early, but HSBC analysts are more cautious and believe that the pound is at risk.

Eden
2021-09-15
11209

According to a report on September 15th, analysts at Goldman Sachs stated that they believe that there are upside risks to UK interest rates and expectations for the pound, because the Bank of England may raise interest rates earlier, but HSBC analysts are more cautious and believe that the pound is at risk. Goldman Sachs expects the pound to be 1.41 against the US dollar for the three-month period and 1.45 for the six-month period, while HSBC predicts that the exchange rate will fall to 1.34 by the end of the year.



Goldman Sachs is bullish on the pound, predicts that the Bank of England will raise interest rates ahead of schedule


Goldman Sachs foreign exchange strategist Michael Cahill said in his weekly exchange rate briefing that a key driver of the pound's upward movement is the Bank of England, which appears to be interested in raising interest rates in the coming months.

On September 9, Bank of England Governor Bailey (Andrew Bailey) revealed that he believes that the minimum economic conditions for raising interest rates have been met. Since then, the debate around the future of the pound has intensified.

In addition, three other members of the Bank of England Monetary Policy Committee, including Deputy Governor Ben Broadbent (Ben Broadbent), also agreed with this view, believing that interest rates will be raised sooner than the market initially expected.

Goldman Sachs' current basic forecast is that the Bank of England will raise interest rates for the first time in the third quarter of 2023. Goldman Sachs strategist Cahill said: "The comments from Bailey and Broadbent may suggest that the Bank of England may raise interest rates earlier than we previously predicted." He pointed out that if the British labor market is in the next few years The month’s performance was better than expected, which may cause the Bank of England to raise interest rates earlier and the pound to strengthen.

HSBC is more cautious about the outlook for the pound


However, HSBC analysts are more cautious about the outlook for the pound. Dominic Bunning, HSBC's head of European foreign exchange research, said in a new strategy briefing that the pound is at risk.

Bonning added: “The British pound seems to be digesting the idea that the Bank of England will become one of the first G10 central banks to raise interest rates and may take action in the middle of next year. In fact, in the past 6-9 Over the month, the pound’s performance appeared to be more positive than the interest rate market. In our view, this created an asymmetric downside risk."

HSBC pointed out that in recent months, the pace of UK data release has slowed, reflecting the slowdown in summer economic growth. Various data have well emphasized this point, and the July GDP report released last week finally confirmed this point.

It is not clear whether HSBC has taken into account the latest data, which indicate that the growth rate of the UK economy may pick up again.

Although Goldman Sachs hinted that it may raise its forecast for the pound, they currently maintain the pound against the euro forecast unchanged, with the three-month and six-month exchange rate forecast at 1.165. They expect the three-month pound to be 1.41 to the dollar and the six-month pound to the dollar to be 1.45. HSBC maintained its previous forecast unchanged, that is, the pound will fall to 1.34 against the dollar at the end of the year.



GBPUSD daily chart

GMT+8 At 15:06 on September 15th, the pound was quoted at 1.3831/33 against the US dollar.

Previous
Next

Bonus rebate to help investors grow in the trading world!

Need Assistance?

7×24 H

Download the APP for Free