12 Feb 2015
Credit Agricole: With BOE’s inflation report due, GBP remains a buy – eFXnews
FXStreet (Barcelona) - The eFXnews Team shares Credit Agricole’s view that GBP remains a buy into BOE’s inflation report, with CA going short on EUR/GBP.
Key Quotes
“The GBP has been supported of late, mainly on the back of rising UK growth expectations. Elsewhere, intact Greece-related uncertainty appears to have increased safe haven-related demand for the currency.”
“We expect the central bank to communicate a more constructive growth outlook while keeping the medium-term inflation outlook broadly stable. This suggests little scope of falling monetary policy expectations.”
“On the contrary, assuming further improving labour market conditions to the benefit of wage price developments, central bank members may start to communicate a more hawkish policy stance sooner than currently assumed.”
“As a result of the above outlined conditions we remain short EUR/GBP.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“The GBP has been supported of late, mainly on the back of rising UK growth expectations. Elsewhere, intact Greece-related uncertainty appears to have increased safe haven-related demand for the currency.”
“We expect the central bank to communicate a more constructive growth outlook while keeping the medium-term inflation outlook broadly stable. This suggests little scope of falling monetary policy expectations.”
“On the contrary, assuming further improving labour market conditions to the benefit of wage price developments, central bank members may start to communicate a more hawkish policy stance sooner than currently assumed.”
“As a result of the above outlined conditions we remain short EUR/GBP.”
This content has been provided under specific arrangement with eFXnews.