24 Jun 2015
GBP could lose momentum in H2 – Rabobank
FXStreet (Edinburgh) - Jane Foley, Senior Currency Strategist at Rabobank, sees the pound shedding further ground during the second half of the year.
Key Quotes
“As it stands we favour steady rates from the BoE until May 2016”.
“This compares with our expectations that the Fed will announce its first rate hike of the cycle in December 2015”.
“For this reason we would expect cable to give up its recent gains during H2 in the approach to the last FOMC of the year”.
“Even though we do not expect the BoE to be in a hurry to hike rates, the Bank should still be tightening as a time when the ECB is continuing its asset purchase programme”.
“We expect EUR/GBP to edge lower under the weight of the ECB’s QE towards 0.70 on a 6 mth view”.
Key Quotes
“As it stands we favour steady rates from the BoE until May 2016”.
“This compares with our expectations that the Fed will announce its first rate hike of the cycle in December 2015”.
“For this reason we would expect cable to give up its recent gains during H2 in the approach to the last FOMC of the year”.
“Even though we do not expect the BoE to be in a hurry to hike rates, the Bank should still be tightening as a time when the ECB is continuing its asset purchase programme”.
“We expect EUR/GBP to edge lower under the weight of the ECB’s QE towards 0.70 on a 6 mth view”.