12 May 2015
Renewed downside pressure on EUR/GBP - RBS
FXStreet (Bali) - The surprising majority won by the UK Conservative party is putting renewed downside pressure on EUR/GBP, notes Brian Daingerfield, FX Trading Strategist at RBS.
Key Quotes
"The surprising majority won by the UK Conservative party is likely a near-term positive for the GBP as expectations of political uncertainty, and with it potential declines in consumer of business confidence, are priced out."
"The GBP may also be benefiting from a relative ‘safe-haven’ status as negotiations between Greece and the Euro-area appear to remain far from an agreement that would unlock additional funding – putting renewed downside pressure on EUR/GBP."
"The BoE left rates unchanged as expected on Monday and the upcoming Inflation Report and Employment Data on Wednesday are the key events in the UK this week."
Key Quotes
"The surprising majority won by the UK Conservative party is likely a near-term positive for the GBP as expectations of political uncertainty, and with it potential declines in consumer of business confidence, are priced out."
"The GBP may also be benefiting from a relative ‘safe-haven’ status as negotiations between Greece and the Euro-area appear to remain far from an agreement that would unlock additional funding – putting renewed downside pressure on EUR/GBP."
"The BoE left rates unchanged as expected on Monday and the upcoming Inflation Report and Employment Data on Wednesday are the key events in the UK this week."