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23 Sep 2014
GBP/USD year-end target at 1.60 or below - RBS
FXStreet (Bali) - GBP/USD and EUR/GBP may remain a Fed/ECB story in the near term, notes RBS, adding that USD uptrend should remain intact for a year-end target of $1.60 or below.
Key Quotes
"Judging by the USD’s positive reaction to last week’s FOMC statement, the hurdle for a hawkish interpretation of both US data and Fed comments appears lower than we previously expected."
"We hence look for the USD up-trend to remain intact and hold to our 1.60 or below year-end target for GBP/USD. Negative interest rates remain a powerful EUR negative, in our view."
"Until Euro area data start to turn up, further EUR weakness appears on the cards. This is seen pushing EUR/GBP lower over the coming year."
Key Quotes
"Judging by the USD’s positive reaction to last week’s FOMC statement, the hurdle for a hawkish interpretation of both US data and Fed comments appears lower than we previously expected."
"We hence look for the USD up-trend to remain intact and hold to our 1.60 or below year-end target for GBP/USD. Negative interest rates remain a powerful EUR negative, in our view."
"Until Euro area data start to turn up, further EUR weakness appears on the cards. This is seen pushing EUR/GBP lower over the coming year."