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Credit Agricole: GBP a buy into QIR – eFXnews

FXStreet (Barcelona) - The eFXnews Team notes Credit Agricole views that with GBP benefitting from improving UK growth prospects and UK's medium-term inflation expectations well-anchored, the pound might move higher from current levels.

Key Quotes

“[..] there is little risk of the BoE considering a more dovish policy stance any time soon. Elsewhere, it appears that the currency is benefiting from continuing uncertainty related to conditions in the Eurozone.”

“Looking ahead, the main focus turns to the inflation report, due on Thursday next week. According to our economists a strong upward revision to growth forecasts is likely. Still, well anchored medium-term inflation expectations and steadily rising pay growth are expected to enable the BoE to look through the muted short-term price developments.”

“As such, next week’s events may have the potential to drive the GBP higher from the current levels, for instance against the EUR. We remain short the cross.”

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