23 Mar 2015
Political risks might weigh down GBP – SG
FXStreet (Barcelona) - The Societe Generale Team shares that the pound stands vulnerable to USD this week due to election risks, outsized current account and budget deficits, suggest to remain short GBP/SEK in the long-term.
Key Quotes
“The one currency which looks vulnerable to weakness against the dollar this week is sterling. There isn't much new news, but the election is approaching and polls still suggest the SNP will hold the balance of power.”
“A weak government, an expensive (vs the Euro) currency, outsized current account and budget deficits, still make for longer-term concerns.”
“Last week's data showed no signs of any upward pressure to wage growth coming through yet and that will keep any hawkish bias at the MPC in check.”
“This week's most important data will be tomorrow's CPI and if that surprises on the downside, look for more talk of rate staying on hold long after the Fed starts hiking and some talk of a possible cut.”
“GBP/USD is vulnerable and we still like long-term shorts in GBP/SEK.”
Key Quotes
“The one currency which looks vulnerable to weakness against the dollar this week is sterling. There isn't much new news, but the election is approaching and polls still suggest the SNP will hold the balance of power.”
“A weak government, an expensive (vs the Euro) currency, outsized current account and budget deficits, still make for longer-term concerns.”
“Last week's data showed no signs of any upward pressure to wage growth coming through yet and that will keep any hawkish bias at the MPC in check.”
“This week's most important data will be tomorrow's CPI and if that surprises on the downside, look for more talk of rate staying on hold long after the Fed starts hiking and some talk of a possible cut.”
“GBP/USD is vulnerable and we still like long-term shorts in GBP/SEK.”