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20 May 2014
GBP outperforming - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that GBP is outperforming.
Key Quotes:
“UK inflationary pressures are higher than expected, rising 0.4%m/m and 1.8%y/y on headline; while core moved back up to 2.0%y/y—see chart."
"Stronger inflation, elevated housing prices, and a central bank that is expected to be the first of the G4 to enter its hiking cycle all position GBP to outperform this quarter. We hold a GBP/USD Q214 target of 1.70 and year‐end target of 1.67; while we hold a EUR/GBP Q214 forecast of 0.81 and a year‐end target of 0.78."
"GBP/USD short‐term technicals: mixed—technical signals are failing to deliver a consistent outlook for GBP as spot struggles to break back to its 1.6996 high. Accordingly there is better risk/reward elsewhere. Support lies at the 50‐day MA at 1.6733; while resistance comes in at 1.6900."
Key Quotes:
“UK inflationary pressures are higher than expected, rising 0.4%m/m and 1.8%y/y on headline; while core moved back up to 2.0%y/y—see chart."
"Stronger inflation, elevated housing prices, and a central bank that is expected to be the first of the G4 to enter its hiking cycle all position GBP to outperform this quarter. We hold a GBP/USD Q214 target of 1.70 and year‐end target of 1.67; while we hold a EUR/GBP Q214 forecast of 0.81 and a year‐end target of 0.78."
"GBP/USD short‐term technicals: mixed—technical signals are failing to deliver a consistent outlook for GBP as spot struggles to break back to its 1.6996 high. Accordingly there is better risk/reward elsewhere. Support lies at the 50‐day MA at 1.6733; while resistance comes in at 1.6900."