GBP/USD: Looking For 1.40 in Q1 On 2 Key Factors – ING

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Where is GBP/USD going? It hasn’t been able to rally beyond the moves driven by the dollar’s weakness but hasn’t fallen either. What’s next?

Here is their view, courtesy of eFXnews:

ING FX Strategy Research discusses the GBP outlook, and thinks that sterling is likely to reach 1.40 in Q1 of 2018 as as UK economic pessimism fades.

We see two factors dictating the pound’s narrative in the short-term: (1) Domestic UK politics and (2) The Bank of England’s policy path.

On the former, we believe noise around a fragile Conservative government may act as a limiting factor for the currency – but note that the bar to actively sell the pound on UK politics remains high…

In terms of UK politics, only a 2018 General Election may feasibly see such risks being priced into GBP…,” ING argues.

Our conviction call is for GBP/USD to rally up to 1.40 on this story, with EUR/GBP moving to 0.85-0.86,” ING projects.

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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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