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GBP Now the Poorest Performer in G10 Tuesday

GBP
  • GBP/USD, GBP/EUR printing fresh session lows in recent trade, with GBP now the poorest performing currency in G10. Moves follow Ramsden's speech to the NFU earlier today, in which he mentioned the need for a 'modest' tightening of policy (suggesting he may not again opt for a 50bps rate rise in the future) and also noted that he does not envisage the Bank Rate rising to "anything like its pre-2007 level of 5%".
  • Coincides with markets continuing to unwind rate hike positioning, with implied rates at year-end now seen at ~1.85% vs. ~2.1% this time last week.
  • Today's move works against the previously bullish GBP/USD outlook, opening 1.3435 support, the Feb 1 low.

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