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11 May 2015
GBP/USD could reach 1.48 in 6-month – Danske Bank
FXStreet (Edinburgh) - According to Senior Analyst Morten Helt at Danske Bank, GBP/USD could visit 1.48 in 6-month view, with the BoE likely to hike in November.
Key Quotes
“GBP rallied strongly on Friday on the back of the surprising election result and EUR/GBP dropped further this morning supported by positive risk sentiment in the market”.
“While an absolute Conservative majority will secure a more stable political outlook, the election result does not change the near-term outlook for the UK economy”.
“Hence, we still expect growth in the UK to rebound in the coming quarters and expect the Bank of England to hike in November”.
“In this respect today’s monetary meeting in the Bank of England is not likely to be a market mover”.
“However, we have revised our 1M and 3M EUR/GBP and our GBP/USD forecasts slightly higher following past weeks’ price action”.
“We still target EUR/GBP at 0.69 in 6M and 0.71 in 12M, while GBP/USD is expected to bottom around 1.48 in 6M (previously 1.43)”.
Key Quotes
“GBP rallied strongly on Friday on the back of the surprising election result and EUR/GBP dropped further this morning supported by positive risk sentiment in the market”.
“While an absolute Conservative majority will secure a more stable political outlook, the election result does not change the near-term outlook for the UK economy”.
“Hence, we still expect growth in the UK to rebound in the coming quarters and expect the Bank of England to hike in November”.
“In this respect today’s monetary meeting in the Bank of England is not likely to be a market mover”.
“However, we have revised our 1M and 3M EUR/GBP and our GBP/USD forecasts slightly higher following past weeks’ price action”.
“We still target EUR/GBP at 0.69 in 6M and 0.71 in 12M, while GBP/USD is expected to bottom around 1.48 in 6M (previously 1.43)”.