25 Sep 2013
Flash: Can UK relative out-performance and sterling strength continue? - HSBC
FXstreet.com (London) - David Bloom, Global Head of FX Strategy & team at HSBC suggests that relative out-performance and sterling strength continue is unlikely to continue.
Key Quotes:
“While the improved housing market has supported UK consumer sentiment and spending, the reality of negative real income growth is likely to see a return of softer UK data and an unwinding of much of sterling's recent strength”.
“Only a month ago it seemed that the Fed was moving towards tapering its QE programme while, at the same time, the Bank of England was providing forward guidance that policy will remain extremely loose for a further protracted period”.
“The general view was sterling would fall rather than rise”.
“…the recovery in the UK housing market has helped UK activity look much rosier, and we have seen a string of strong economic activity data”.
“…the rise in bond yields in anticipation of the Fed move has had a dampening effect on activity in both the US and the Eurozone, and sterling has moved higher as a result”.
Key Quotes:
“While the improved housing market has supported UK consumer sentiment and spending, the reality of negative real income growth is likely to see a return of softer UK data and an unwinding of much of sterling's recent strength”.
“Only a month ago it seemed that the Fed was moving towards tapering its QE programme while, at the same time, the Bank of England was providing forward guidance that policy will remain extremely loose for a further protracted period”.
“The general view was sterling would fall rather than rise”.
“…the recovery in the UK housing market has helped UK activity look much rosier, and we have seen a string of strong economic activity data”.
“…the rise in bond yields in anticipation of the Fed move has had a dampening effect on activity in both the US and the Eurozone, and sterling has moved higher as a result”.