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7 Mar 2013
Forex Flash: GBP remains a sell on rallies – Rabobank
The sterling is intensifying its bearishness on Thursday, as we get closer to the BoE MPC meeting, trading below the key resistance of 1.5000
In the opinion of Jane Foley, Chief Currency Strategist at Rabobank, the BoE would likely incur in further easing in the current year. Although she was formerly inclined to May as the most likely date, increased weakness in the UK fundamentals, a more dovish tone in the last BoE minutes and the government pressure would point to today’s meeting as a good chance to materialize her visions.
“However, sterling is likely not yet fully prepared for a new era of significantly looser monetary policy. Given that this is now a risk, we retain our preference to sell sterling into any rallies”, concludes Foley.
In the opinion of Jane Foley, Chief Currency Strategist at Rabobank, the BoE would likely incur in further easing in the current year. Although she was formerly inclined to May as the most likely date, increased weakness in the UK fundamentals, a more dovish tone in the last BoE minutes and the government pressure would point to today’s meeting as a good chance to materialize her visions.
“However, sterling is likely not yet fully prepared for a new era of significantly looser monetary policy. Given that this is now a risk, we retain our preference to sell sterling into any rallies”, concludes Foley.