19 Jul 2013
Flash: GBP/USD headed for 1.4100 by year-end? – UBS
FXstreet.com (New York) - Mansoor Mohi-uddin, Head of Foreign Exchange Strategy analyzes the outlook of the GBP relative to the latest BoE action.
GBP/USD could fall towards 1.4100 in 2013
“The GBP has been supported by the latest Bank of England Monetary
Policy Committee minutes showing no votes for renewed easing this month and by firmer UK unemployment and retail sales data – the post-financial crisis endgame for the GBP still looks bearish.”
“The minutes show MPC members remain open to providing further stimulus to the economy when the August Inflation Report discusses forward guidance on the future conduct of monetary policy.”
The MPC next month has the opportunity to address both concerns through renewing asset purchases or more likely by pre-committing to keeping interest rates low. “That will weaken the pound again. We target the GBP/USD falling to 1.41 during 2013.”
GBP/USD could fall towards 1.4100 in 2013
“The GBP has been supported by the latest Bank of England Monetary
Policy Committee minutes showing no votes for renewed easing this month and by firmer UK unemployment and retail sales data – the post-financial crisis endgame for the GBP still looks bearish.”
“The minutes show MPC members remain open to providing further stimulus to the economy when the August Inflation Report discusses forward guidance on the future conduct of monetary policy.”
The MPC next month has the opportunity to address both concerns through renewing asset purchases or more likely by pre-committing to keeping interest rates low. “That will weaken the pound again. We target the GBP/USD falling to 1.41 during 2013.”