Wednesday, November 11, 2015

Sterling remains under pressure – Societe Generale

FXStreet (Edinburgh) - Kit Juckes, Strategist at Societe Generale, sees GBP under further pressure in the next months.

Key Quotes

“GBP/USD has been tracking rate expectations pretty faithfully and at the moment, futures price rates at almost identical levels in a year’s time”.

“If the UK economy loses momentum, the window for UJK rate hikes will get even smaller. If stronger US data revives the possibility of a more protracted Fed tightening cycle, rates will move in favour of the dollar”.

“And of course, if (when) ‘Brexit’ becomes a market driver, sterling is very vulnerable”.

“There might be a 65% chance that EUR/GBP and GBP/USD are simply a function of what EUR/USD does in the months ahead, but the other 35% possibility is that sterling falls”.
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