23 Jan 2014
Flash: GBP/AUD to reach 2.00 - ANZ
FXstreet.com (Bali) - ANZ Strategist Brian Martin continues to expect GBP/AUD to rise to 2.00.
Key Quotes
"UK unemployment drops much faster than the BoE predicted when forward guidance was introduced. Sterling has benefitted as a result and further appreciation looks warranted."
"As the UK economy recovers, the preferable option for any monetary tightening would first come via the exchange rate."
"There has been no meaningful deterioration in the balance of payments despite the recovery in final domestic demand and the sterling’s rise."
"A strong pound helps to contain imported price inflation via the imported price effect, and - at the margin - will also help to anchor inflation expectations."
"We continue to look for further appreciation in sterling and expect cable to move towards 1.70. Against the euro, outperformance may also run further in the near-term, whilst against the AUD we retain our long held target of a move to 2.00 or higher."
Key Quotes
"UK unemployment drops much faster than the BoE predicted when forward guidance was introduced. Sterling has benefitted as a result and further appreciation looks warranted."
"As the UK economy recovers, the preferable option for any monetary tightening would first come via the exchange rate."
"There has been no meaningful deterioration in the balance of payments despite the recovery in final domestic demand and the sterling’s rise."
"A strong pound helps to contain imported price inflation via the imported price effect, and - at the margin - will also help to anchor inflation expectations."
"We continue to look for further appreciation in sterling and expect cable to move towards 1.70. Against the euro, outperformance may also run further in the near-term, whilst against the AUD we retain our long held target of a move to 2.00 or higher."