Home GBP: The Waning Vaccine Advantage; Where To From Here? – Credit Agricole
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GBP: The Waning Vaccine Advantage; Where To From Here? – Credit Agricole

Kenny Fisher
Updated:

What is the outlook for GBP/USD over the coming 3 months?

Credit Agricole CIB Research discusses GBP/USD outlook and  targets the pair at 1.35 over the coming 3 months.

“Growing UK vaccine rollout and escalating post-Brexit tensions with the EU to cloud the UK economic outlook even after lockdown conditions are lifted in Q2. The US economy to boom in Q2.

The GBP/USD rally contributed to the more aggressive tightening of the UK financial conditions relative to the US.  This could make the BoE more dovish than the Fed,” CACIB notes.

“Our analysis suggests that overvalued  GBP/USD (G10 VALFeX fair value of 1.3450)  could be one of the best G10 FX hedges against the twin risks of elevated UST yields and risk aversion in Q2,” CACIB adds.

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Kenny Fisher

Kenny Fisher

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.

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