3 Dec 2013
Flash: GBP bid and a brighter picture for the Chancellor – BAML
FXstreet.com (London) - Strategists at Bank of America Merrill Lynch noted that there is a back drop of brighter prospects for the UK ahead of Osborne’s Pre-Budget Report coming up. Sterling has been well bid as risk aversion and the UK outperforms.
Key Quotes:
“UK Chancellor George Osborne will set out his Pre-Budget Report (PBR) on 5 December against a backdrop of notably brighter prospects for both public finances and the broader economy”.
“The monthly UK Government borrowing data is heavily influenced by a variety of extraordinary factors at present, in particular the BoE remitting the coupons from their QE gilt holdings back to the Treasury”.
“More broadly, in March the Office for Budget Responsibility (OBR) envisaged UK GDP growth of around 0.6% and 1.8% in 2013 and 2014, respectively”.
“Since then, however, after the notably stronger-than-expected growth through 1-3Q and signs of further robust growth in 4Q and heading into 2014, we think they could potentially revise those forecasts up to around 1.4% and 2.7%, respectively”.
Key Quotes:
“UK Chancellor George Osborne will set out his Pre-Budget Report (PBR) on 5 December against a backdrop of notably brighter prospects for both public finances and the broader economy”.
“The monthly UK Government borrowing data is heavily influenced by a variety of extraordinary factors at present, in particular the BoE remitting the coupons from their QE gilt holdings back to the Treasury”.
“More broadly, in March the Office for Budget Responsibility (OBR) envisaged UK GDP growth of around 0.6% and 1.8% in 2013 and 2014, respectively”.
“Since then, however, after the notably stronger-than-expected growth through 1-3Q and signs of further robust growth in 4Q and heading into 2014, we think they could potentially revise those forecasts up to around 1.4% and 2.7%, respectively”.