Credit Agricole suggests buying GBP on dips at current levels - eFXnews

FXStreet (Łódź) - The eFXnews team comment that Credit Agricole sees the GBP a buy on dips close to current levels, as market expectations for the BoE rate hike remain supported.

Key quotes

"Industrial production in August rose at a constructive pace, regardless of falling external demand expectations as related to weaker conditions in the Eurozone."

"This in combination with still expanding services sector-related business activity should make a case of further improving labour market conditions to the benefit of stabilizing price developments."

"Accordingly we expect investors’ BoE rate expectations to stay well supported keeping the GBP a buy on dips around the current levels, for instance against the CHF."

"The cross should benefit from diverging BoE-SNB monetary policy expectations. This is especially true as lower than expected Swiss inflation in September should reinforce the SNB’s dovish monetary policy stance. We remain long GBP/CHF."

"CA runs a long GBP/CHF from 1.5140 targeting 1.5800."

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