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8 May 2015
Sterling now depends on rates - Rabobank
FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank explained that if UK rates stay low for longer upside potential for GBP may be curtailed.
Key Quotes:
"That said, even if the BoE delays its first rate move to May 2016, it could still be acting at a time when the ECB is continuing with its aggressive asset purchasing policy."
"This outlook is essentially why we have been forecasting a modestly paced downtrend for EUR/GBP for some time. Our forecast of a move to EUR/GBP0.70 around year end still stands."
Key Quotes:
"That said, even if the BoE delays its first rate move to May 2016, it could still be acting at a time when the ECB is continuing with its aggressive asset purchasing policy."
"This outlook is essentially why we have been forecasting a modestly paced downtrend for EUR/GBP for some time. Our forecast of a move to EUR/GBP0.70 around year end still stands."