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26 Feb 2015
GBP/USD to hold btw 1.52-55 through 2015 - Rabobank
FXStreet (Bali) - Jane Foley, Senior Currency Strategist at Rabobank, see cable holding between 1.55 and 1.52 through much of 2015.
Key Quotes
"It has been our long standing view that the Fed is unlikely to hike interest rates before the end of this year. This call has moderated our bullish calls for the USD this year. We expect that the BoE will announce its first interest rate hike of the cycle in February 2016, this a little sooner than current money market expectations."
"If UK money market rates continue to adjust towards our view sterling could find some additional support, though this is likely to be more marked against currencies which are being undermined by aggressive central bank policies."
"Even though UK election uncertainty suggests that the sterling crosses could be facing a volatile period, the attraction of sterling has been underpinned by low levels of yields across much of Europe. We expect EUR/GBP to trend lower this year, but see cable holding between 1.55 and 1.52 through much of 2015."
Key Quotes
"It has been our long standing view that the Fed is unlikely to hike interest rates before the end of this year. This call has moderated our bullish calls for the USD this year. We expect that the BoE will announce its first interest rate hike of the cycle in February 2016, this a little sooner than current money market expectations."
"If UK money market rates continue to adjust towards our view sterling could find some additional support, though this is likely to be more marked against currencies which are being undermined by aggressive central bank policies."
"Even though UK election uncertainty suggests that the sterling crosses could be facing a volatile period, the attraction of sterling has been underpinned by low levels of yields across much of Europe. We expect EUR/GBP to trend lower this year, but see cable holding between 1.55 and 1.52 through much of 2015."