19 Aug 2015
BoE probably can't lift until Q2 2016 - RBS
FXStreet (Guatemala) - Analysts at RBS noted the conditions surrounding GBP.
Key Quotes:
"On GBP, there is an ongoing dilution of the bullish bias. That due to the August Quarterly Inflation dovish side, July wage growth slipping (albeit smalls), and the relapse in commodity prices bringing to the fore."
"Markets now seem to doubt BOE can lift off before Q2’16, hence rate hike expectations and speculative GBP/USD shorts have rebounded in tandem. Positioning changes echo the same bias: over the last week, spec shorts rebounded by 3.8k (from 8-month lows) to -10.3k, Levered longs fell 6k to +39k and Asset Managers’ shorts increased by 5k to -51.2k."
Key Quotes:
"On GBP, there is an ongoing dilution of the bullish bias. That due to the August Quarterly Inflation dovish side, July wage growth slipping (albeit smalls), and the relapse in commodity prices bringing to the fore."
"Markets now seem to doubt BOE can lift off before Q2’16, hence rate hike expectations and speculative GBP/USD shorts have rebounded in tandem. Positioning changes echo the same bias: over the last week, spec shorts rebounded by 3.8k (from 8-month lows) to -10.3k, Levered longs fell 6k to +39k and Asset Managers’ shorts increased by 5k to -51.2k."