HSBC bearish GBP/CHF, target is 1.1

HSBC is looking for the CHF to rise, saying CHF shorts “look weary”, and the CHF is resilient:

• resilience is likely due to geopolitical tensions
• with uncertainties lingering, CHF can stay supported on a ‘safe haven’ basis

As for the GBP side, analysts at HSBC are looking for a Bank of England rate cut despite high and sticky services inflation, and wage growth. And see scope for further rate cuts:

“May BoE meeting could be an important stage-setter for a possible June easing”

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HSBC idea is to sell GBP/CHF at 1.1350

• target 1.1000

On Tuesday, Pill gave GBP a leg up to that level HSBC is looking to short at:

• BOE’s Pill: The timing for a rate cut is still some way off
• BOE’s Pill says seeing signs of a downward shift in inflation persistency
• BOE’s Haskel: High inflation to remain unless labour market weakens

This article was written by Eamonn Sheridan at www.forexlive.com.