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12 Aug 2014
GBP – dose of reality? – Rabobank
FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank highlights that over the past month, sterling has fallen around 2% vs. the USD.
Key Quotes:
“A large part of the fall in cable can be attributed to the firmer stance of the USD”.
“Nevertheless, GBP has weakened against every developed world currency with the exception of the NZD in this period suggesting that domestic factors are also at play”.
“In our view, investors are currently swallowing a dose of reality with respect to the performance of the UK economy and the outlook for BoE interest rate policy”.
“While this could keep sterling on the back foot in the near-term, we do not expect this to extend too much further against the EUR”.
Key Quotes:
“A large part of the fall in cable can be attributed to the firmer stance of the USD”.
“Nevertheless, GBP has weakened against every developed world currency with the exception of the NZD in this period suggesting that domestic factors are also at play”.
“In our view, investors are currently swallowing a dose of reality with respect to the performance of the UK economy and the outlook for BoE interest rate policy”.
“While this could keep sterling on the back foot in the near-term, we do not expect this to extend too much further against the EUR”.