6 Mar 2015
GBP strength unlikely to be sustained into elections – BAML
FXStreet (Barcelona) - Strategists at BofA-Merrill Lynch, share the trade setup for GBP/USD into UK elections, with pound strength unlikely to be sustained.
Key Quotes
“GBP has performed strongly over the past month as cyclical tailwinds dominate sentiment and as the rate market brings forward its timing of the first UK rate hike. However, with the General Election approaching, we believe that GBP strength is unlikely to be sustained and that a period of higher volatility is likely.”
“We go long 2mth GBP/USD ATM (1.5370) straddles on election uncertainty.”
Key Quotes
“GBP has performed strongly over the past month as cyclical tailwinds dominate sentiment and as the rate market brings forward its timing of the first UK rate hike. However, with the General Election approaching, we believe that GBP strength is unlikely to be sustained and that a period of higher volatility is likely.”
“We go long 2mth GBP/USD ATM (1.5370) straddles on election uncertainty.”