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6 Aug 2015
Further GBP-strength likely near-term – Societe Generale
FXStreet (Edinburgh) - Kit Juckes, Strategist at Societe Generale, sees the sterling gathering steam in the very near term.
Key Quotes
“Shifts in how the market prices the pace of UK and US tightening have driven GBP/USD trends in recent months, but right now, both look to price too slow a pace of hikes – even in a new normal world”.
“There’s not much to do short term in GBP/USD therefore, but today, short EUR/GBP may pay dividends before the focus switches back to the US data and the fed tomorrow. The FX position may be less crowded than the rates one today”.
Key Quotes
“Shifts in how the market prices the pace of UK and US tightening have driven GBP/USD trends in recent months, but right now, both look to price too slow a pace of hikes – even in a new normal world”.
“There’s not much to do short term in GBP/USD therefore, but today, short EUR/GBP may pay dividends before the focus switches back to the US data and the fed tomorrow. The FX position may be less crowded than the rates one today”.