HSBC: the pound will be corrected down against the U.S. dollar, but will not collapse

According to the expectations of HSBC economists, the British pound sterling will decrease against the U.S. dollar, and a sharp decrease in the pair is unlikely.

According to the economists themselves, with the sensitivity to any risks and a dovish 50 basis points increase by the Bank of England (BoE) at the December 15 meeting, some short-term decrease of the pound sterling is expected.

There was a fall in the GBPUSD pair in October. The reasons and concerns for this are less obvious. Economists say that the Autumn Budget has led to a recovery in the financial confidence of the UK. Also, there are signs of improvement in the British external imbalance, especially regarding the visible trade.

Considering all factors, GBPUSD is expected to correct downward, but a new collapse is not expected in the near term.