10 Mar 2016
GBP/USD rally could have short legs – Westpac
According to Strategist at Westpac Richard Franulovich, the current rally in GBP could find sellers around 1.4500.
Key Quotes
“GBP/USD bounce from 1.3850 looks like short covering more than anything else, the EU referendum still more than three months away and a strong dovish BoE tilt encouraging markets to ignore constructive data sets and instead lean in favour of pricing modest chances of BoE rate cuts before year’s end”.
“GBP a strong sell on strength into 1.45, if seen”.
Key Quotes
“GBP/USD bounce from 1.3850 looks like short covering more than anything else, the EU referendum still more than three months away and a strong dovish BoE tilt encouraging markets to ignore constructive data sets and instead lean in favour of pricing modest chances of BoE rate cuts before year’s end”.
“GBP a strong sell on strength into 1.45, if seen”.