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11 May 2015
GBP remains well supported – Rabobank
FXStreet (Edinburgh) - Jane Foley, Senior FX Strategist at Rabobank, expects the political scenario and growth prospects to lend extra support to the pound.
Key Quotes
“Having been told by the pollsters that the UK was facing a protracted period of coalition negotiations and maybe even a second election in the not too distance future, the prospect of a single party government with both a business friendly right leaning and a parliamentary majority has been welcomed by GBP investors”.
“Political issues aside, we have been arguing that sterling has found support this year from relative yield spreads as policy action from the ECB and other European central banks has driven down rates on the other side of the Channel”.
“Even though the BoE is in no rush to hike, MPC members have played down any risk of a rate cut and we expect that interest rate spreads will lend sterling moderate support”.
Key Quotes
“Having been told by the pollsters that the UK was facing a protracted period of coalition negotiations and maybe even a second election in the not too distance future, the prospect of a single party government with both a business friendly right leaning and a parliamentary majority has been welcomed by GBP investors”.
“Political issues aside, we have been arguing that sterling has found support this year from relative yield spreads as policy action from the ECB and other European central banks has driven down rates on the other side of the Channel”.
“Even though the BoE is in no rush to hike, MPC members have played down any risk of a rate cut and we expect that interest rate spreads will lend sterling moderate support”.