10 Mar 2015
GBP stance still neutral short/medium term - Westpac
FXStreet (Edinburgh) - The outlook for the sterling remains neutral for the upcoming periods, suggested strategists at Westpac.
Key Quotes
“EUR/GBP’s grind lower should continue with little meaningful UK/Eurozone event risk to upset the trend next week. Sub-0.70 look realistic especially once UK general election risk is out of the way, with ECB full steam ahead of QE and the BoE posture shifting towards rate hikes”.
“The model is neutral GBP for the time being as a big positive growth signal (one of the strongest in the G10) and positive long term valuation compete with negative readings from total yield and current account momentum”.
“Recent impulsive decline has reinstated the downtrend amid a negative MT momentum shift. Multiple 2013 lows down to 1.4800/50 remain a notable support”.
Key Quotes
“EUR/GBP’s grind lower should continue with little meaningful UK/Eurozone event risk to upset the trend next week. Sub-0.70 look realistic especially once UK general election risk is out of the way, with ECB full steam ahead of QE and the BoE posture shifting towards rate hikes”.
“The model is neutral GBP for the time being as a big positive growth signal (one of the strongest in the G10) and positive long term valuation compete with negative readings from total yield and current account momentum”.
“Recent impulsive decline has reinstated the downtrend amid a negative MT momentum shift. Multiple 2013 lows down to 1.4800/50 remain a notable support”.