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20 Feb 2014
Flash: GBP still attractive - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, argues that the sterling would keep its shine in next periods.
Key Quotes
"The pound has continued to remain firm following the release of the latest weaker than expected UK employment report. The unemployment rate unexpectedly ticked higher by 0.1 point to 7.2% at the end of 2013, although it had still fallen sharply by 0.6% in the second half of last year."
"The underlying trend for the unemployment rate continues to remain lower although there are some signs that the pace of decline may ease ahead supporting the BoE’s view that a pick up in productivity and increasing labour force participation will allow them some time before having to raise rates".
"Still with US growth having slowed more notably in the near-term and the ECB on the verge of easing monetary policy further given low inflation, the pound remains relatively attractive supported as well by expected demand resulting from upcoming M&A flows".
Key Quotes
"The pound has continued to remain firm following the release of the latest weaker than expected UK employment report. The unemployment rate unexpectedly ticked higher by 0.1 point to 7.2% at the end of 2013, although it had still fallen sharply by 0.6% in the second half of last year."
"The underlying trend for the unemployment rate continues to remain lower although there are some signs that the pace of decline may ease ahead supporting the BoE’s view that a pick up in productivity and increasing labour force participation will allow them some time before having to raise rates".
"Still with US growth having slowed more notably in the near-term and the ECB on the verge of easing monetary policy further given low inflation, the pound remains relatively attractive supported as well by expected demand resulting from upcoming M&A flows".