28 Jun 2013
Flash: GBP/USD faces 3-month target of 1.4700 – UBS
FXstreet.com (New York) - According to Research Analyst Gareth Berry at UBS, “The Fed's recent “One non-policy catalyst for any currency is positioning and in particular, longs are still dominant amongst institutional names.” notes Research Analyst Gareth Berry at UBS.
With the exception of asset manager buying of GBP vs. the EUR, overall positions are stable. Whether these flows are a continuation of Eurozone exit flows or chasing UK strength remains to be seen: the UK's qualities as a safe haven in any risk-off environment will always be source of support, but we do question the market's ability to extended current longs. “We target GBP/USD and EUR/GBP at 1.4700 and 0.8700 respectively in 3m.” Berry calculates.
With the exception of asset manager buying of GBP vs. the EUR, overall positions are stable. Whether these flows are a continuation of Eurozone exit flows or chasing UK strength remains to be seen: the UK's qualities as a safe haven in any risk-off environment will always be source of support, but we do question the market's ability to extended current longs. “We target GBP/USD and EUR/GBP at 1.4700 and 0.8700 respectively in 3m.” Berry calculates.