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6 Aug 2015
EUR/GBP points to 0.67 by year-end – BAML
FXStreet (Edinburgh) - According to analysts at BAML, the cross could head towards the 0.67 area by end of 2015.
Key Quotes
“We continue to focus our bullish GBP strategies via the crosses, where the policy divergence theme is at its strongest”.
“The most pervasive driver for the pound will remain the outlook for UK interest rates”.
“Our analysis suggests that GBP has historically continued to perform well even after the start of a tightening cycle”.
“The fact that broader market positioning is not currently an impediment to GBP upside combined with a relatively benign profile for UK rate hikes next year is reassuring”.
“EUR/GBP has bounced impressively from its 0.6936 set in July low but with our European economists raising the possibility of further ECB action, perhaps as early as September, we reaffirm our year-end target of 0.67”.
Key Quotes
“We continue to focus our bullish GBP strategies via the crosses, where the policy divergence theme is at its strongest”.
“The most pervasive driver for the pound will remain the outlook for UK interest rates”.
“Our analysis suggests that GBP has historically continued to perform well even after the start of a tightening cycle”.
“The fact that broader market positioning is not currently an impediment to GBP upside combined with a relatively benign profile for UK rate hikes next year is reassuring”.
“EUR/GBP has bounced impressively from its 0.6936 set in July low but with our European economists raising the possibility of further ECB action, perhaps as early as September, we reaffirm our year-end target of 0.67”.