GBP/USD 2017-end forecasts raised to 1.35 vs. 1.20 prev - HSBC

The HSBC Research Team makes upward revision to the year-end GBP/USD price forecasts, in the wake of the recent hawkish signals delivered by the BOE Governor Carney and MPC member Vlieghe.

Key Quotes:

Raises GBPUSD 2017 year-end forecast to 1.3500 vs 1.2000 previous

Cites more hawkish BOE and "cyclical forces"

Sees it back to 1.2600 by end-2018 and EURGBP at 0.9500

Now see two 25bps rate hikes by end-2018 vs none previous

First one Nov 2017, second May 2018