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31 Mar 2015
GBP vulnerable ahead of UK elections – Scotiabank
FXStreet (Edinburgh) - Camilla Sutton, Chief FX Strategist at Scotiabank, expects the sterling to suffer the uncertainties around the results of the upcoming elections in the UK.
Key Quotes
“In the near‐term, GBP is vulnerable to downside risk, particularly considering uncertainty around the upcoming election”.
“The BoE has entered its pre‐election blackout period, which will leave the currency vulnerable to the broad USD strengthening trend, election uncertainty and negative sentiment”.
“Accordingly, we’d expect fresh lows in GBP but then for the currency to stabilize and retrace into year‐end as relative growth, central bank policy and flows support GBP over EUR”.
Key Quotes
“In the near‐term, GBP is vulnerable to downside risk, particularly considering uncertainty around the upcoming election”.
“The BoE has entered its pre‐election blackout period, which will leave the currency vulnerable to the broad USD strengthening trend, election uncertainty and negative sentiment”.
“Accordingly, we’d expect fresh lows in GBP but then for the currency to stabilize and retrace into year‐end as relative growth, central bank policy and flows support GBP over EUR”.