This is surely the last leg of the Sterling rally – SocGen

UK rate pricing is heading into recession-inducing Subsequently, Sterling is set to suffer, Kit Juckes, Chief Global FX Strategist at Société Générale, reports.

Sterling’s last hurrah? 

“Jeremy Hunt, the UKL’s Chancellor told Sky News that ‘It’s not a trade-off between tackling inflation and recession, in the end the only path to sustainable growth is to bring down inflation’ as he expressed support for tighter monetary policy even if the economy suffers.” 

“If the K does raise rates by another 1%, as is priced by markets, and all that talk of long and variable lags between monetary policy implementation and when it takes effect on the economy are ignored, yet again, recession seems certain. How high will Sterling climb from here before it starts falling? Given how much is priced into the curve, this is surely the last leg of the GBP rally.”