22 Jan 2014
Flash: GBP/USD eyes on UK data - Danske Bank
FXstreet.com (Barcelona) - Danske Bank strategists note that today the FX market will closely follow the UK news.
Key Quotes
“Especially, how the Monetary policy committee looks at the labour market given that the 7.0% unemployment threshold is probably going to be breached this spring.
“The BoE might try to talk down rate hike expectations but given that today will also bring a new unemployment number that in our view might surprise positively, falling more than expected by the market, we doubt that the Committee will succeed in taking away the positive GBP sentiment at the moment.”
“We continue to have a stronger GBP against EUR as one of our main views for 2014 and we would recommend to use any GBP weakness to buy the currency.”
Key Quotes
“Especially, how the Monetary policy committee looks at the labour market given that the 7.0% unemployment threshold is probably going to be breached this spring.
“The BoE might try to talk down rate hike expectations but given that today will also bring a new unemployment number that in our view might surprise positively, falling more than expected by the market, we doubt that the Committee will succeed in taking away the positive GBP sentiment at the moment.”
“We continue to have a stronger GBP against EUR as one of our main views for 2014 and we would recommend to use any GBP weakness to buy the currency.”