10 Jun 2013
Flash: GBP/USD buy on dips strategy near-term - Rabobank
FXstreet.com (Barcelona) - The UK economy has entered into an interesting phase as a series of improved fundamental indicators suggest the country may be entering into a nascent economic recovery, says Jane Foley, Senior FX Strategist at Rabobank.
Carney has a lot of work to do when he replaces Mr. King as new BoE chief next month. One of the main focal points will undoubtedly be whether or not he keeps the risk of further stimulus alive. According to Foley, the sterling will be facing this conundrum with an improved outlook.
On the EUR/GBP in particular, Foley sees 0.84 to 0.86 range holding, although she still has a keener viewer on being a seller of rallies near-term. The strategist thinks, nonetheless, that "the direction of cable will be heavily influenced by the USD which in turn depends on expectations regarding Fed policy." That said, Foley supports a GBP/USD buy on dips strategy near-term.
Carney has a lot of work to do when he replaces Mr. King as new BoE chief next month. One of the main focal points will undoubtedly be whether or not he keeps the risk of further stimulus alive. According to Foley, the sterling will be facing this conundrum with an improved outlook.
On the EUR/GBP in particular, Foley sees 0.84 to 0.86 range holding, although she still has a keener viewer on being a seller of rallies near-term. The strategist thinks, nonetheless, that "the direction of cable will be heavily influenced by the USD which in turn depends on expectations regarding Fed policy." That said, Foley supports a GBP/USD buy on dips strategy near-term.