12 May 2015
EUR/GBP might see 0.70 in the near-term – TDS
FXStreet (Barcelona) - According to FX Strategists at TD Securities, expect the firmer tone of GBP to extend further in the near-term, hence forecast EUR/GBP to head towards 0.70 around the same time period.
Key Quotes
“The UK election result continues to reverberate around the markets, with the GBP rising broadly—and strongly—since Thursday. We look for the firmer GBP undertone to extend further near-term."
“There is an element of a “relief rally” in the GBP bounce. UK voters avoided the worst case scenarios that looked very much base case probabilities going into the vote and a the quick installation of a majority government (of the market's preferred hue) has provided some obvious short-term support for the GBP and helped reverse the weakness seen running into the election.”
“We also think the UK macro-economic backdrop is supportive for further gains; with the election out of the way, investors can focus this aspect of the GBP’s backdrop and perhaps get sterling back to the business of relative out-performance that was evident earlier this year.”
“Tomorrow’s BoE QIR and UK employment data may be supportive in this respect.”
“Right now, we like the idea of GBPCAD extending its recent rebound from the mid 1.82 area to challenge the peaks seen in February (near 1.96) and we think EURGBP should be able to extend recent weakness below 0.7150, the base of the consolidation channel in place since early March and make a run towards 0.70 near-term.”
Key Quotes
“The UK election result continues to reverberate around the markets, with the GBP rising broadly—and strongly—since Thursday. We look for the firmer GBP undertone to extend further near-term."
“There is an element of a “relief rally” in the GBP bounce. UK voters avoided the worst case scenarios that looked very much base case probabilities going into the vote and a the quick installation of a majority government (of the market's preferred hue) has provided some obvious short-term support for the GBP and helped reverse the weakness seen running into the election.”
“We also think the UK macro-economic backdrop is supportive for further gains; with the election out of the way, investors can focus this aspect of the GBP’s backdrop and perhaps get sterling back to the business of relative out-performance that was evident earlier this year.”
“Tomorrow’s BoE QIR and UK employment data may be supportive in this respect.”
“Right now, we like the idea of GBPCAD extending its recent rebound from the mid 1.82 area to challenge the peaks seen in February (near 1.96) and we think EURGBP should be able to extend recent weakness below 0.7150, the base of the consolidation channel in place since early March and make a run towards 0.70 near-term.”