HSBC Backs Pound Sterling against the Dollar for 2023

  • HSBC sees USD uptrend ending
  • Upgrade GBP/USD forecasts
  • Initiate a tactical ‘long’ GBP/USD trade

Image © Pound Sterling Live

HSBC says it is now time to bet on a Pound Sterling recovery against the U.S. Dollar, as analysts prepare for a rebound in global sentiment and say the UK’s ills are now well understood and incorporated into the market.

The Pound to Dollar exchange rate (GBP/USD) has lost 12% in value over 2022 on building fears of a deep UK recession and as global equities fell into a bear market, confirming the strong positive correlation between the exchange rate and global sentiment.

However, the forces that pushed the Dollar higher over recent months are fast fading and 2023 will be a year in which the tide turns against the Greenback.

“The USD has performed very well over the last 18 months, but a number of the forces that propelled it towards its highest valuation in decades are seen losing ground,” says Paul Mackel, Global Head of FX…

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