GBP: BoE's easing cycle weighs on currency – HSBC

The Bank of England's recent rate cut has created downward pressure on the British pound (GBP). According to HSBC, the ongoing easing cycle might lead to the GBP underperforming against currencies like the Australian dollar (AUD) and New Zealand dollar (NZD) which are expected to see rate hikes. Given the potential for other major economies' central banks to raise rates, the GBP stands to weaken further, facing an increasingly challenging position in the foreign exchange market. With the UK economy still shrouded in uncertainty, the implications of such monetary policies are significant concerns in both the short and long term. Market participants need to monitor this situation closely.