1135 GMT - Sterling faces a hit as the Bank of England could cut interest rates more than markets expect, TD Securities strategists say in a note. Following a recent string of better-than-expected U.K. economic data, the strategists now expect the BOE to deliver its next rate cut in May instead of March. However, they still predict 125 basis points of cuts this year including this month's 25bp move. The market is pricing in a further 50bp of cuts this year, according to LSEG. Investor positioning in sterling remains optimistic, leaving it vulnerable to a further downward correction, the strategists say. Moreover, heightened uncertainty surrounding President Trump's tariff plans could weigh on the risk sensitive sterling versus the dollar. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
February 21, 2025 06:35 ET (11:35 GMT)
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