9 Jul 2015
GBP/USD bounce ahead? – SocGen
FXStreet (Barcelona) - Kit Juckes of Societe Generale, comments on the UK budget, and further sees GBP/USD as a better trade than the euro.
Key Quotes
“The UK budget is described in the FT as ‘sprawling across politics' which can be interpreted as meaning that it contained less fiscal tightening overall, than expected. The pound is competing with the Norwegian Krone as the weakest of the G10 currencies this week and only beats CLP and BRL among the major traded EM currencies. With a strong RICS survey overnight, the brighter mood to markets could translate into slightly higher UK rates and a bounce in GBP/USD looks like a better trade than EUR/USD.”
Key Quotes
“The UK budget is described in the FT as ‘sprawling across politics' which can be interpreted as meaning that it contained less fiscal tightening overall, than expected. The pound is competing with the Norwegian Krone as the weakest of the G10 currencies this week and only beats CLP and BRL among the major traded EM currencies. With a strong RICS survey overnight, the brighter mood to markets could translate into slightly higher UK rates and a bounce in GBP/USD looks like a better trade than EUR/USD.”