HSBC analysts are forecasting a rise in the Swiss franc (CHF) and a potential Bank of England (BoE) rate cut. They believe CHF shorts are looking vulnerable and the currency remains resilient despite high services inflation in the UK. On the GBP side, HSBC analysts anticipate a BoE rate cut despite elevated and sticky services inflation and wage growth. They also see scope for further rate cuts, with a possible easing in June. The analysts recommend selling GBP/CHF at 1.1350. HSBC’s comments come after Monetary Policy Committee member Catherine Pill’s remarks on Tuesday, which provided a boost to the British pound. Pill’s hawkish stance pushed GBP/CHF to 1.1350, the level at which HSBC is looking to establish a short position.
HSBC Targets GBP/CHF Sell at 1.1350 Amid BoE Easing Expectations
