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GBP/USD rises to around 1.3245 as BoE repricing questioned

FXStreet said strategists at Brown Brothers Harriman see a gap between swap pricing for roughly 100 bps of BoE hikes over 12 months and their view that the BoE may need to tighten less.

Reported · Written up by our desk · Major Pairs

The British pound strengthened against the US dollar in early European trade on Monday, with GBP/USD up about 0.15% to around 1.3245, according to FXStreet.

FXStreet noted the move comes even as market experts question a hawkish repricing of the Bank of England policy path.

Strategists at Brown Brothers Harriman said the swaps curve implies about 100 basis points of BoE rate hikes over the next 12 months to 4.75%, but argued the BoE may not need to tighten as much as markets expect, given that rates are already in the process of being priced in.

Latest closeGBP/USD 1.325 ▲0.0%

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