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22 Apr 2015
GBP/USD bullish, year-end target at 1.50 – Scotiabank
FXStreet (Edinburgh) - In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, the short term outlook on GBP/USD remains bullish, pointing to 1.50 towards year-end.
Key Quotes
“The reaction is on the back of the BoE release of a more hawkish than expected set of minutes and the broadly weaker USD”.
“The highlights from the minutes include: A unified BoE, with all 9-members voting in favour of no policy change”.
“Inflation is being held temporary lower and expected to turn negative, in part due to the strength in EURGBP, which is pushing import costs lower, as well as the reduction in excise duties”.
“Interest rates are expected to rise but the actual path will be dependent on economic circumstances and likely to be more gradual than previous cycles”.
“Leading into the May 7th election, GBP is likely to face a renewed bout of downside pressure; however the fundamental currency picture has improved. We hold a modest year-end target of 1.50”.
Key Quotes
“The reaction is on the back of the BoE release of a more hawkish than expected set of minutes and the broadly weaker USD”.
“The highlights from the minutes include: A unified BoE, with all 9-members voting in favour of no policy change”.
“Inflation is being held temporary lower and expected to turn negative, in part due to the strength in EURGBP, which is pushing import costs lower, as well as the reduction in excise duties”.
“Interest rates are expected to rise but the actual path will be dependent on economic circumstances and likely to be more gradual than previous cycles”.
“Leading into the May 7th election, GBP is likely to face a renewed bout of downside pressure; however the fundamental currency picture has improved. We hold a modest year-end target of 1.50”.