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17 Apr 2015
GBP/USD near-term risk titled lower – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, sees elections as the major near-term risk for GBP/USD, and further expects the pair to move towards 1.51 by 2015-end.
Key Quotes
“GBP is strong having rallied 0.5%, broken back above 1.50 and flirting with its 50‐day MA. Since Monday’s low, GBP has rallied over 3% as the market reacts to a weakening in the USD and domestic developments as well as some suggest the risk around the election are already priced.”
“We believe the near‐term risk remains tilted lower around the election, but hold a year‐end 1.51 target.”
“Today’s data was encouraging as 248k jobs were added 3m/3m, well above consensus of 170k, the unemployment rate dropped to 5.6% and the wage data was mixed.”
Key Quotes
“GBP is strong having rallied 0.5%, broken back above 1.50 and flirting with its 50‐day MA. Since Monday’s low, GBP has rallied over 3% as the market reacts to a weakening in the USD and domestic developments as well as some suggest the risk around the election are already priced.”
“We believe the near‐term risk remains tilted lower around the election, but hold a year‐end 1.51 target.”
“Today’s data was encouraging as 248k jobs were added 3m/3m, well above consensus of 170k, the unemployment rate dropped to 5.6% and the wage data was mixed.”