18 Feb 2015
Credit Agricole: GBP remains a buy on dips into UK labor data release – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes Credit Agricole remains in favour of buying GBP on any dips, especially against the EUR, into today’s UK labor data release.
Key Quotes
“At 0.3% (cons. 0.4%, prev. 0.5%) January CPI released yesterday was below expectations. However, as the latest data failed to pressure investors’ central-bank rate expectations, the currency impact was limited.”
“It must be noted that the BoE has already stressed that it expects prices to slow further in the short term.”
“From that angle the main focus will be on today’s labour data. Firm business activity suggests that labour market conditions will continue to improve.”
”This is likely to be reflected in further stabilising wage price developments, to the benefit of medium-term inflation expectations and the GBP.”
“Accordingly, we remain in favour of buying GBP dips, for instance against the EUR.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“At 0.3% (cons. 0.4%, prev. 0.5%) January CPI released yesterday was below expectations. However, as the latest data failed to pressure investors’ central-bank rate expectations, the currency impact was limited.”
“It must be noted that the BoE has already stressed that it expects prices to slow further in the short term.”
“From that angle the main focus will be on today’s labour data. Firm business activity suggests that labour market conditions will continue to improve.”
”This is likely to be reflected in further stabilising wage price developments, to the benefit of medium-term inflation expectations and the GBP.”
“Accordingly, we remain in favour of buying GBP dips, for instance against the EUR.”
This content has been provided under specific arrangement with eFXnews.