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16 May 2014
GBP/USD: Stronger Sterling ahead - UBS
FXStreet (Córdoba) - The UBS analyst team has changed the GBP/USD forecast to 1.7000 in 3 months given economic and policy divergence between the BoE and the Fed.
Key Quotes
“The ECB is likely to further ease monetary policy in June and the USD still suffers from the weak Q1 GDP. However, the UK economy gives the Bank of England a hard time to push out market expectation of a first rate hike”.
“We change the GBP/USD forecast to 1.70, 1.66 and 1.64 in three, six and twelve months (previously 1.65, 1.65 and 1.62), as well as the EUR/GBP forecast to 0.79, 0.77 and 0.76 (0.81, 0.78 and 0.77) and GBP/CHF to 1.56, 1.60 and 1.63 (1.51, 1.58 and 1.60) over the same horizon”.
Key Quotes
“The ECB is likely to further ease monetary policy in June and the USD still suffers from the weak Q1 GDP. However, the UK economy gives the Bank of England a hard time to push out market expectation of a first rate hike”.
“We change the GBP/USD forecast to 1.70, 1.66 and 1.64 in three, six and twelve months (previously 1.65, 1.65 and 1.62), as well as the EUR/GBP forecast to 0.79, 0.77 and 0.76 (0.81, 0.78 and 0.77) and GBP/CHF to 1.56, 1.60 and 1.63 (1.51, 1.58 and 1.60) over the same horizon”.