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FX Moment #50: BE's Hanson for a UK, Sterling Focus
FX Moment #50
BE's Hanson for a UK, Sterling Focus
The US-Iran ceasefire and associated relief in risk aversion and pull-back in oil prices may be a first step out of the sterling-dollar bear cycle of the past few weeks. There will be cyclical relief as the market adjusts back to less hawkish Bank of England rate expectations which were hurting the pound via the stagflation narrative and structural relief as the expected monetary-fiscal policy mix means less reliance on fiscal stimulus to boost the economy and avoid any fiscal credibility issue that's become a constant consideration for the pound. In this episode of FX Moment, BI's Chief FX Strategist Audrey Childe-Freeman and Bloomberg Economics Chief UK Economist Dan Hanson discuss the U-turn on the Bank of England interest rate and growth expectations in the Iran war context, fiscal policy as well as how UK politics could shape sterling's near to mid-term dynamics.
Apr 08, 2026