30 Apr 2014
GBP/USD: Most of the appreciation complete - ANZ
FXStreet (Bali) - Brian Martin, FX Strategist at ANZ, anticipates that much of the appreciation in the pound vs USD may now be complete.
Key Quotes
"With the exception of the 2004-2008 period, GBP/USD has struggled to trade sustainably above the 1.70 area over the past twenty years, and that strength in sterling coincided with a sustained period of USD weakness from 2006-2008 when the DXY fell by over 20%."
"At the time of writing, cable was roughly 1% shy of the 1.70, suggesting that much of the appreciation in the pound vs USD may now be complete. At present, the conditions for another marked overshoot may not be present in the absence of a marked weakening in the dollar."
Key Quotes
"With the exception of the 2004-2008 period, GBP/USD has struggled to trade sustainably above the 1.70 area over the past twenty years, and that strength in sterling coincided with a sustained period of USD weakness from 2006-2008 when the DXY fell by over 20%."
"At the time of writing, cable was roughly 1% shy of the 1.70, suggesting that much of the appreciation in the pound vs USD may now be complete. At present, the conditions for another marked overshoot may not be present in the absence of a marked weakening in the dollar."