25 Mar 2015
GBP/USD targets 1.51 towards year-end – Scotiabank
FXStreet (Edinburgh) - Strategists at Scotiabank see the sterling recovering ground towards the 1.5100 handle by end of 2015.
Key Quotes
“UK GDP growth looks well positioned to reaccelerate over the course of 2015 after decelerating in late 2014. Consumer spending will remain the main engine of growth as household real income gets a boost from lower inflation, coupled with solid job creation and rising wage inflation”.
“Furthermore, UK export growth should benefit from the firming economic growth prospects in Europe, which should translate into stronger demand for UK products and services. In this context, it is not unreasonable to expect UK GDP growth to approach 3% y/y in 2015”.
“Unlike most currencies GBP trended higher in February, spurred by the relative outlook for central bank policy, growth, flows and sentiment. By the end of February, the CFTC was reporting a relatively small $3bn net GBP short position; while technicals had shifted from bullish to neutral”.
“GBP is likely to lose some ground against the USD by year-end, mainly on the US side of the GBPUSD equation, closing the year at 1.51”.
Key Quotes
“UK GDP growth looks well positioned to reaccelerate over the course of 2015 after decelerating in late 2014. Consumer spending will remain the main engine of growth as household real income gets a boost from lower inflation, coupled with solid job creation and rising wage inflation”.
“Furthermore, UK export growth should benefit from the firming economic growth prospects in Europe, which should translate into stronger demand for UK products and services. In this context, it is not unreasonable to expect UK GDP growth to approach 3% y/y in 2015”.
“Unlike most currencies GBP trended higher in February, spurred by the relative outlook for central bank policy, growth, flows and sentiment. By the end of February, the CFTC was reporting a relatively small $3bn net GBP short position; while technicals had shifted from bullish to neutral”.
“GBP is likely to lose some ground against the USD by year-end, mainly on the US side of the GBPUSD equation, closing the year at 1.51”.