Bullish view on the GBP, supported by the external environment and UK specific developments – HSBC

Economists at HSBC maintain their bullish view on the British Pound.

GBP should benefit from an improvement in global risk appetite

“Our base case is that the GBP should benefit from an improvement in global risk appetite.”

“Recent upward surprises to domestic activity data, a potentially sharp fall in supply-side driven inflation through the summer, and an improving UK trade balance should also support the GBP. Until we see clearer signs of those factors changing, we maintain our bullish view on the GBP.”