28 Apr 2015
Bearish on GBP/USD – RBS
FXStreet (Barcelona) - FX Trading Strategists at RBS, maintain a medium-term bearish outlook on GBP/USD as they note that the election risks remain underpriced.
Key Quotes
“Our economists expect first quarter UK GDP growth to rise 0.5% q/q and acknowledge a dilemma between the stronger business surveys and weaker official output data.”
“We remain bearish on GBP/USD medium-term, and we believe that the risks of a slowdown in investment intentions in an uncertain political environment may be underpriced.”
“Still, without a clear slowdown in survey data and a more clearly dovish MPC, it may be difficult for downside risks emanating from near-term political risks or a persistent current account deficit to manifest for GBP.”
Key Quotes
“Our economists expect first quarter UK GDP growth to rise 0.5% q/q and acknowledge a dilemma between the stronger business surveys and weaker official output data.”
“We remain bearish on GBP/USD medium-term, and we believe that the risks of a slowdown in investment intentions in an uncertain political environment may be underpriced.”
“Still, without a clear slowdown in survey data and a more clearly dovish MPC, it may be difficult for downside risks emanating from near-term political risks or a persistent current account deficit to manifest for GBP.”