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GBP: Bringing Forward Our BoE Rate Hike Call To Nov

The British pound enjoyed Carney’s positive comments and advanced. Is he really up for a rate hike? Here is the view from BTMU:

Here is their view, courtesy of eFXnews:

BTMU FX Strategy Research  has brought forward the timing of the first MPC rate increase from Feb 2018 to Nov 2017.

From an FX perspective,  BTMU  short-term metrics point to GBPupward momentum being more likely sustained going forward.

“Short-term yield spreads have moved in favour of the pound, unlike for the euro for example. Secondly, our 10-year real yield spread is also turning and moving in favour of a higher GBP/USD. The pound certainly looks over sold versus the euro based on short-term yield spreads. Of course, as has been the case over the last year, the biggest moves for the pound have been Brexit related and hence negotiations need to proceed relatively smoothly for GBP/USD to hold on to recent gains.

We assume modest further gains over the short-term with an end-Q3 forecast of 1.3100,” BTMU projects.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.