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18 Mar 2015
GBP/USD seen at 1.44 in 3-month – Danske Bank
FXStreet (Edinburgh) - Jens Pedersen, Senior Analyst at Danske Bank, see the possibility of the pair to visit the area of 1.4400 in 3-month view.
Key Quotes
“While we have long argued that Bank of England is a ‘Fed light’ and that both the USD and GBP fundamentally should edge higher on relative monetary policy in the next six months, the upcoming general election in the UK on 7 May will likely cap the full upside potential in GBP”.
“Polls have been relatively stable suggesting that the election is unusually open and there is a very high risk of a hung parliament”.
“Consequently, we expect the recent rise in the correlation between GBP and USD to lose momentum in the coming months”.
“We now expect GBP/USD to edge lower towards 1.47 in 1M and 1.44 in 3M before moving higher towards 1.46 in 6M and 1.52 in12M”.