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12 Feb 2014
Flash: Go long GBP/CHF ahead of BoE inflation report - Nomura
FXStreet (Bali) - Nomura recommends a long position in GBP/CHF ahead of the BoE inflation report later today.
Key Quotes
"The 'consensus' long GBP story has suffered from a positioning squeeze over the recent risk off episodes. Still, the GBP has substantial room to appreciate, in our opinion."
"We recommend buying GBP/CHF into Inflation Report on Wednesday. We believe the GBP/CHF offers attractive levels especially after the negative Swiss news over the weekend."
"On the pending news on monetary policy, the BoE is expected to „evolve/devolve‟ its 7.0% unemployment threshold guidance, which could be seen as a short term rates negative (as it would imply rates on hold for longer). But this shift is widely expected and we do not expect the GBP to depreciate, even if the BoE adjust its forward guidance."
Key Quotes
"The 'consensus' long GBP story has suffered from a positioning squeeze over the recent risk off episodes. Still, the GBP has substantial room to appreciate, in our opinion."
"We recommend buying GBP/CHF into Inflation Report on Wednesday. We believe the GBP/CHF offers attractive levels especially after the negative Swiss news over the weekend."
"On the pending news on monetary policy, the BoE is expected to „evolve/devolve‟ its 7.0% unemployment threshold guidance, which could be seen as a short term rates negative (as it would imply rates on hold for longer). But this shift is widely expected and we do not expect the GBP to depreciate, even if the BoE adjust its forward guidance."