November 10,2022 03:38 AM ET
By:AnalysisWatch
Sterling experienced a big intraday sell-off yesterday, while today we learned about the RICS house price balance data for October.
In the view of ING economists, GBPUSD could test the 1.1150 mark today.
House prices are starting to feel the crunch.
"UK estate agents now see house prices falling for the first time since the summer of 2020, a clear response to the recent rise in mortgage rates." This will again challenge the market's assessment of the Bank of England's tightening cycle, where we think rates priced at 4.65% next summer are too high.
"1.1150 is a clear target for GBPUSD if the dollar rises today." Again, we doubt that gains above 1.15 will be long-lasting.