16 Jan 2014
Flash: GBP/USD bearish toes inching into the water - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that UK news comes in the form of a slightly soft RICS survey which hasn't moved markets.
Key Quotes
“Yesterday we start putting our bearish GBP toes into the water. My concerns about the pound are long-term - reflecting the lopsided nature of recovery. In the coming weeks though, GBP/USD should be capped by the likely impact of the FSC on perceptions of MPC policy.”
“Having a committee for macro-prudential tinkering, will be a more powerful tool in persuading markets that the UK will not hike rates than is the case, say, in the US.”
“There, our economics team is warning that US GDP growth could be as high as 4% in the second half of 2013, giving an awful lot of momentum for 2014. The gap between interest rates and nominal GDP is increasingly absurd. But hey - ogres are real, the inflation dragon is just a mythical beast.”
Key Quotes
“Yesterday we start putting our bearish GBP toes into the water. My concerns about the pound are long-term - reflecting the lopsided nature of recovery. In the coming weeks though, GBP/USD should be capped by the likely impact of the FSC on perceptions of MPC policy.”
“Having a committee for macro-prudential tinkering, will be a more powerful tool in persuading markets that the UK will not hike rates than is the case, say, in the US.”
“There, our economics team is warning that US GDP growth could be as high as 4% in the second half of 2013, giving an awful lot of momentum for 2014. The gap between interest rates and nominal GDP is increasingly absurd. But hey - ogres are real, the inflation dragon is just a mythical beast.”