16 Feb 2015
GBP could strengthen further vs. EUR – BTMU
FXStreet (Edinburgh) - In the view of Derek Halpenny, European Head of GMR at BTMU, sees the sterling gathering pace vs. its European peer towards the 0.65-0.70 area.
Key Quotes
“The financial markets do not have the first rate increase fully priced until early 2016 and we still expect the first move to come later this year”.
“Given the ongoing uncertainty in the euro-zone and given the prospect of the FOMC possibly starting its rate increase cycle in June, we continue to view pound strength as more a probability versus the euro rather than the dollar”.
“While GBP/USD should stabilize in H2 2015 as the BOE joins the Fed in raising rates, the divergence play will remain pronounced versus the euro”.
“The pre-crisis norm for EUR/GBP was between 0.6500-0.7000, and we can expect a slow move toward that range again”.
Key Quotes
“The financial markets do not have the first rate increase fully priced until early 2016 and we still expect the first move to come later this year”.
“Given the ongoing uncertainty in the euro-zone and given the prospect of the FOMC possibly starting its rate increase cycle in June, we continue to view pound strength as more a probability versus the euro rather than the dollar”.
“While GBP/USD should stabilize in H2 2015 as the BOE joins the Fed in raising rates, the divergence play will remain pronounced versus the euro”.
“The pre-crisis norm for EUR/GBP was between 0.6500-0.7000, and we can expect a slow move toward that range again”.