The GBP/TRY continued the downward retracement from its August 2022 tops, which also housed the year-to-date highs. This decline follows further misery for the British Pound, which continues to face relentless selling in the market as various headwinds play out.
Goldman Sachs has made a grim call on inflation, predicting annualized consumer prices to rise by 22.4% in 2023 if natural gas prices continue to rise unabated. This figure is far above the Bank of England’s projection of a 13.3% peak in the consumer price index.
The new U.K. Prime Minister will be known during the week. The new PM will inherit an economy projected to contract by 3.4% if Goldman Sachs’ inflation outlook is realized.
The Bank of England’s Monetary Policy Report Hearings are the major fundamental trigger for the Pound next week, followed a week later by the latest consumer inflation data (14 September) and the BoE’s interest rate decision (15 September).
GBP/TRY Short (Sell)
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