Back
18 Mar 2015
GBP/USD seen at 1.44 in 3-month – Danske Bank
FXStreet (Edinburgh) - Jens Pedersen, Senior Analyst at Danske Bank, see the possibility of the pair to visit the area of 1.4400 in 3-month view.
Key Quotes
“While we have long argued that Bank of England is a ‘Fed light’ and that both the USD and GBP fundamentally should edge higher on relative monetary policy in the next six months, the upcoming general election in the UK on 7 May will likely cap the full upside potential in GBP”.
“Polls have been relatively stable suggesting that the election is unusually open and there is a very high risk of a hung parliament”.
“Consequently, we expect the recent rise in the correlation between GBP and USD to lose momentum in the coming months”.
“We now expect GBP/USD to edge lower towards 1.47 in 1M and 1.44 in 3M before moving higher towards 1.46 in 6M and 1.52 in12M”.
Key Quotes
“While we have long argued that Bank of England is a ‘Fed light’ and that both the USD and GBP fundamentally should edge higher on relative monetary policy in the next six months, the upcoming general election in the UK on 7 May will likely cap the full upside potential in GBP”.
“Polls have been relatively stable suggesting that the election is unusually open and there is a very high risk of a hung parliament”.
“Consequently, we expect the recent rise in the correlation between GBP and USD to lose momentum in the coming months”.
“We now expect GBP/USD to edge lower towards 1.47 in 1M and 1.44 in 3M before moving higher towards 1.46 in 6M and 1.52 in12M”.