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11 Mar 2015
Credit Agricole: GBP a buy on dips against EUR – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes Credit Agricole views that the favourable UK growth prospects and increasing rate expectations from the BoE will be positive for GBP, hence suggesting to buy GBP dips against the EUR.
Key Quotes
“We expect the GBP to remain a buy on dips against the EUR, mainly due to additional room for diverging monetary policy expectations.”
“Constructive growth prospects should keep investors’ central bank rate expectations strongly supported to the benefit of the currency.”
“From that angle today’s focus will shift to the release of January industrial production data, which should confirm firm growth conditions. Although an improving UK outlook is hardly new news, the message is perhaps more important given the recent rebound in Eurozone economic releases.”
“Indeed, for investors like ourselves basing their long GBP positions on the relative UK outperformance, reinforcing UK economic data helps maintain the widening spread between UK and Eurozone short rate expectations pressuring EUR/GBP.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“We expect the GBP to remain a buy on dips against the EUR, mainly due to additional room for diverging monetary policy expectations.”
“Constructive growth prospects should keep investors’ central bank rate expectations strongly supported to the benefit of the currency.”
“From that angle today’s focus will shift to the release of January industrial production data, which should confirm firm growth conditions. Although an improving UK outlook is hardly new news, the message is perhaps more important given the recent rebound in Eurozone economic releases.”
“Indeed, for investors like ourselves basing their long GBP positions on the relative UK outperformance, reinforcing UK economic data helps maintain the widening spread between UK and Eurozone short rate expectations pressuring EUR/GBP.”
This content has been provided under specific arrangement with eFXnews.