GBP: December BoE rate cut looks underpriced – ING

FXStreetNov 7, 2025 9:51 AM

View all comments（0）



Pound Sterling (GBP) has bounced after the BoE’s steady decision, but with Governor Bailey leaning toward a December cut, downside risks for GBP remain, ING's FX analyst Chris Turner notes.

BoE hold lifts GBP

"Sterling is enjoying a modest recovery after the Bank of England left rates unchanged yesterday. However, it now seems Governor Andrew Bailey is the swing voter and minded for a December cut. That outcome is only priced with a 70% probability right now, meaning that there is scope for lower short-term rates and a weaker pound."

"Expect EUR/GBP to find good support if it gets anywhere near the 0.8760 area, and we would expect it to be trading above 0.88 heading into the Budget later this month."

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Comments (0)

Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.

Commenting Guidelines

Recommended Articles

Korea’s KOSPI Index Dives Over 7%, Warning Bull Market May Be Nearing End

TradingKey - Recently, the South Korean stock market has repeatedly hit record highs. At the market open on May 15, the KOSPI Index briefly broke through the 8,000-point psychological level before staging a sharp intraday plunge, with losses exceeding 7% at one point. It closed down 6.12%, signaling collective profit-taking as investors locked in gains at key resistance levels.

US Stocks Hit New Highs as Warsh Takes Office, Nvidia Gains for Seventh Day, Cerebras Surges in Debut

TradingKey - On May 14, Eastern Time, the three major U.S. stock indices closed higher across the board, with the Nasdaq and S&P 500 both hitting record highs. The Dow Jones Industrial Average closed above the 50,000 mark for the first time in three months. On the same day, Kevin Warsh officially succeeded Jerome Powell as Chair of the Federal Reserve, ushering in the Fed's "Warsh Era."

Three Major Tailwinds Support Kospi to Surpass 8,000 Points for Record High; JPMorgan Backs Samsung: Any Pullback Is a Buying Opportunity

Tradingkey - During the Asian morning session on May 15, the KOSPI opened lower but trended upward, briefly surpassing 8,000 points to hit a record high, reaching an intraday peak of 8,046.78 points. As of press time, the KOSPI had reversed to a 0.4% decline, trading at 7,949.71. Market analysis suggests three major tailwinds are supporting the upward trajectory of the South Korean stock market: tech giants continue to scale up capital expenditure, significant room remains for the expansion of AI application penetration, and geopolitical factors alongside data sovereignty are driving increased investment from non-US countries. Given the high weighting of AI-related industries among South Korean listed companies, these factors are expected to provide continued support for the market. Furthermore, corporate governance is poised to become a second structural support pillar by 2026, alongside earnings improvement. If companies continue to deliver on share buybacks and cancellations, dividend increases, asset efficiency optimization, and enhanced transparency in information disclosure, the market pricing of the "Korea Discount" is expected to narrow further, driving a valuation recovery for low P/B blue chips from a tactical phase into a sustained trend.

Today’s Market Recap: AI Rally Sends S&P 500, Nasdaq to Records; Nvidia Leads Surge

US markets hit records on AI growth and Nvidia’s China expansion. Key drivers include Cisco’s gains, Cerebras’ IPO, US-China diplomacy, South Korean retail FOMO, and Middle East tensions.

Cerebras Systems IPO 2026: Date, Price, Valuation, and Whether CBRS Is Worth Buying

TradingKey - Cerebras Systems (CBRS) IPO prices May 13–14 at $125–$135/share. $26–$27B valuation, 20x oversubscribed, $510M revenue, 47% net margin, OpenAI 750MW deal. Everything you need to know.

Featured Tools