1 Jul 2013
Flash: BoE’s forward guidance could hurt the GBP – Rabobank
FXstreet.com (Edinburgh) - The GBP/USD is now printing fresh intraday highs around 1.5250 on Monday, recovering ground lost after dipping to session lows in the boundaries of 1.5180.
M.Carney starts his term as Governor of the BoE today, and Jane Foley, Strategist at Rabobank, commented, “If forward guidance is used forcefully by Carney, the upshot is that over the summer months the market could be left with the impression of a dovish policy from the Bank even if QE is not re-kindled. This is likely to sap the pound of too many notions of strength although further decent UK data releases should offer support”.
The expert also noted that Rabobank’s expects the pair to gyrate around 1.53 in 1m view, 1.55 in 3m and 1.54 in a 12m horizon.
M.Carney starts his term as Governor of the BoE today, and Jane Foley, Strategist at Rabobank, commented, “If forward guidance is used forcefully by Carney, the upshot is that over the summer months the market could be left with the impression of a dovish policy from the Bank even if QE is not re-kindled. This is likely to sap the pound of too many notions of strength although further decent UK data releases should offer support”.
The expert also noted that Rabobank’s expects the pair to gyrate around 1.53 in 1m view, 1.55 in 3m and 1.54 in a 12m horizon.