GBP: Here Is Why Further Downside Is Likely Limited From


The pound jumps and falls on central bankers’ musings. What’s next?

Here is their view, courtesy of eFXnews:

BTMU FX Strategy Research holds an optimistic assessment of the Brexit negotiations moving toward a favorable transition phase (2yrs perhaps) beyond the current end-date of negotiations currently set at 29th March 2019.

“We believe it is in the interest of both sides to ‘dial-down’ that cliff-edge date and by focusing quickly on a transition deal that effectively will mean the UK remaining in the Single Market for longer is a scenario we see as becoming the “reality of Brexit negotiations” perhaps by Q1 or Q2 2018.

For this reason, we had pencilled Feb 2018 for a first rate hike by the BoE,” BTMU argues.

As such, BTMU concludes that the downside for the GBP from here should be limited given the prospect of a favorable transition deal and given that scenario is also the assumption of the BoE that prompted a conclusion in the QIR that rates may need to move higher than the financial markets are currently assuming.

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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 the 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.

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