So who banks with HSBC? Reports this morning from them suggesting…
“GBP’s reach exceeds its grasp” says Dominic Bunning, a strategist at HSBC, in a recent briefing on the currency. “In our view that upward momentum is undeserved from a value perspective. The move in GBP has far exceeded that of other anchors which one would normally associate with currency outperformance.”
At the time of writing this GBPEUR has rallied 4.0% in 2021, with GBPUSD going up 3.25%.
EUR & USD
We do feel that GBP is running out of steam against the majors and we’ve seen the majority of the spike.
If you’d like to discuss this further, please do not hesitate to get in contact.