9 Mar 2015
Pre-election uncertainty negative for GBP – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank notes according to the CFTC net spec positioning as at 3rd March, 2015, GBP net shorts have pushed higher, probably aided by pre-election uncertainty.
Key Quotes
“For the first time in six weeks GBP net shorts pushed higher. Pre-election uncertainty is a negative sterling factor.”
“However, the fact that UK bonds still offer better yield relative to many European alternatives coupled with assurances from BoE Governor Carney that the Bank will look through disinflation pressures (on the basis that low commodity prices is good for growth), has recently lent the pound some support.”
Key Quotes
“For the first time in six weeks GBP net shorts pushed higher. Pre-election uncertainty is a negative sterling factor.”
“However, the fact that UK bonds still offer better yield relative to many European alternatives coupled with assurances from BoE Governor Carney that the Bank will look through disinflation pressures (on the basis that low commodity prices is good for growth), has recently lent the pound some support.”