8 May 2015
GBP might fall back slightly after election euphoria fades – Danske
FXStreet (Barcelona) - Analysts at Danske Bank, expect GBP/USD to stabilize around 1.5350 levels in the coming weeks, and EUR/GBP to rise towards 0.7350 in 1M.
Key Quotes
“In the very short term, it seems likely GBP could fall back slightly again as the euphoria fades. We look for GBP/USD to stabilise around the 1.5350 level in the coming weeks, as a possible correction lower in GBP might be countered by further USD weakness due to a possible ongoing unwinding of speculative long USD positions.”
“We target EUR/GBP at 0.7350 in 1M.”
“As the dust settles, it should very much be business as usual - at least from an economic and financial point of view. Thus we expect the UK to recover as projected before the election, and we still expect the Bank of England to increase interest rates in November.”
“Hence, the combination of additional EUR weakness caused by the ECB’s ‘hot potato effect’ coupled with re-pricing of the BoE should keep EUR/GBP under pressure for now and we target EUR/GBP at 0.69 in 6M.”
Key Quotes
“In the very short term, it seems likely GBP could fall back slightly again as the euphoria fades. We look for GBP/USD to stabilise around the 1.5350 level in the coming weeks, as a possible correction lower in GBP might be countered by further USD weakness due to a possible ongoing unwinding of speculative long USD positions.”
“We target EUR/GBP at 0.7350 in 1M.”
“As the dust settles, it should very much be business as usual - at least from an economic and financial point of view. Thus we expect the UK to recover as projected before the election, and we still expect the Bank of England to increase interest rates in November.”
“Hence, the combination of additional EUR weakness caused by the ECB’s ‘hot potato effect’ coupled with re-pricing of the BoE should keep EUR/GBP under pressure for now and we target EUR/GBP at 0.69 in 6M.”