Analysts at TD Securities are expecting a mixed bag of policy support measures which presents a highly complex set of potential implications for sterling. Timing and sequencing will matter considerably. GBP/USD trades at 1.3007.
Key quotes
“In cable, our first target for a GBP-positive policy package is the early-February peaks at 1.3215. From there, our attention would shift to 1.3284 while the post-election spike high of 1.3514 would represent a significant reassessment point from a medium-term perspective.”
“We maintain our year-end forecast of 1.39 for GBPUSD in 2020, but we highlight the situation remains highly fluid.”
“Primary support should arise at 1.2850 while the 28 February lows around 1.2725 also look quite meaningful to us. Those should provide a solid backstop for now, but we note sterling continues to face a raft of other risks.”
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