3 Feb 2015
Recovery in crude prices to support GBP – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, explains that the strong correlation between crude oil and FX majors suggests that the recent recovery in crude might be supportive for the pound.
Key Quotes
“Most of the g-10 currencies ex-USD were hit by a sharp sell-off in the crude prices since Q4 2014.”
“Falling inflation expectations in the UK also pressured Bank of England to hint at a more gradual rate hike path than earlier expected.”
“However, Crude prices rallied more than 11% in last two trading sessions.”
“A strong correlation between Crude and major currencies threatened by falling inflation expectations means the GBP could see a revival due to recovery in Crude prices.”
Key Quotes
“Most of the g-10 currencies ex-USD were hit by a sharp sell-off in the crude prices since Q4 2014.”
“Falling inflation expectations in the UK also pressured Bank of England to hint at a more gradual rate hike path than earlier expected.”
“However, Crude prices rallied more than 11% in last two trading sessions.”
“A strong correlation between Crude and major currencies threatened by falling inflation expectations means the GBP could see a revival due to recovery in Crude prices.”