The British pound (GBP) is facing downward pressure following the Bank of England's (BoE) recent rate cut, as highlighted by HSBC's analysis. The BoE's ongoing easing cycle is likely to weaken the GBP against stronger currencies, particularly the Australian dollar (AUD) and New Zealand dollar (NZD), both of which are anticipated to experience rate hikes. Current trading dynamics suggest that the GBP/AUD and GBP/NZD pairs may continue to decline as market sentiment shifts.
The implications for GBP/USD and EUR/GBP are equally concerning, as the potential for further easing from the BoE could drag the exchange rate lower. Traders are closely watching the 1.30 level in GBP/USD and the 0.85 level in EUR/GBP, which may serve as key technical thresholds. As the market adjusts to these developments, the GBP's performance will likely lag behind its peers, affecting cross-currency transactions and positioning strategies in the forex market.
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Data Source: FX Killer Analysis Team Updated: 2025-12-22 11:18
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.