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20 May 2015
GBP/USD to trade lower in H2 – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, expects GBP/USD to trade around 1.50 levels in H2 2015 and EUR/GBP to dip towards 0.70.
Key Quotes
“The drop in the value of cable in recent sessions can be in part explained by the improvement in the USD after yesterday’s strong US housing data. We would also argue that sterling has lost its post election glow.”
“The recent announcement of a July 8 budget should forecast the market’s mind on the fact that UK growth is likely to be bogged down by austerity in the coming years. Since this news coincides with a slew of noise surrounding the UK’s EU membership referendum, there is every reason for investors to see sterling in a less attractive light this week.“
“We expect that cable will spend most of H2 trading lower and closer to the 1.50 level than recent levels.”
“We still expect EUR/GBP to edge gradually towards 0.70 under the weight of the ECB’s QE programme.”
Key Quotes
“The drop in the value of cable in recent sessions can be in part explained by the improvement in the USD after yesterday’s strong US housing data. We would also argue that sterling has lost its post election glow.”
“The recent announcement of a July 8 budget should forecast the market’s mind on the fact that UK growth is likely to be bogged down by austerity in the coming years. Since this news coincides with a slew of noise surrounding the UK’s EU membership referendum, there is every reason for investors to see sterling in a less attractive light this week.“
“We expect that cable will spend most of H2 trading lower and closer to the 1.50 level than recent levels.”
“We still expect EUR/GBP to edge gradually towards 0.70 under the weight of the ECB’s QE programme.”