8 Jul 2015
GBP/USD around 1.52, BoE could hike in Q2 2016 – Rabobank
FXStreet (Edinburgh) - Jane Foley, Senior Currency Strategist at Rabobank, sees Cable heading towards 1.52 in the near term, while the BoE could hike in May 2016.
Key Quotes
“We retain our view that the BoE is unlikely to hike before May 2016”.
“A worst case scenario for Greece has the potential to push this call back further”.
“However, with interest cuts likely from central banks such as the BoC, RBA, RBNZ and with easing ongoing from the BoJ and the ECB and a possibility from the SNB and DNB, Riksbank and Norges bank, sterling is likely to hold its own in the coming months against a variety of other G10 currency”.
“That said we favour a slight moderate in GBP/USD towards 1.52 on a 3 mth view”.
Key Quotes
“We retain our view that the BoE is unlikely to hike before May 2016”.
“A worst case scenario for Greece has the potential to push this call back further”.
“However, with interest cuts likely from central banks such as the BoC, RBA, RBNZ and with easing ongoing from the BoJ and the ECB and a possibility from the SNB and DNB, Riksbank and Norges bank, sterling is likely to hold its own in the coming months against a variety of other G10 currency”.
“That said we favour a slight moderate in GBP/USD towards 1.52 on a 3 mth view”.