GBP/Asia crosses: Still in a range - ANZ

Analysts at ANZ maintain their view that GBP/Asia crosses will likely continue to trade in a slightly upward sloping range. 

Key Quotes

“At the current level, there is a slight upside risk in both GBP/CNH and GBP/SGD. The key driver is a potential interest rate hike by the BoE. The market is currently pricing in an 83% chance of a 25bp hike at this Thursday’s meeting and another 25bp hike within the next 12 months. We have pencilled in a 25bp hike, either this week or at the 14 December meeting.”

“Monetary policy aside, we think a much bigger determinant of the GBP is the evolution of the Brexit negotiations. Failure to crack the current deadlock will weigh on the currency. We are of the view that progress could be made in the negotiations in the near term.”