Sterling saw a big intra-day sell-off yesterday while earlier today we saw the RICS house price balance data for October. In the view of economists at ING, GBPUSD could test the 1.1150 mark today.
House prices starting to feel the crunch
“UK estate agents now see house prices declining for the first time since the summer of 2020 – a clear response to the recent surge in mortgage rates. This will again question the market’s pricing of the Bank of England’s tightening cycle, where we think rates priced at 4.65% next summer are way too high.”
“1.1150 is a clear target for GBPUSD were the dollar to strengthen today. Again, we doubt any gains over 1.15 endure.”