9 Jun 2015
Remaining bearish on GBP/USD – JPM
FXStreet (Barcelona) - Paul Meggyesi, FX Strategist at J.P.Morgan, maintains a bearish outlook on GBP/USD, targeting 1.50 levels.
Key Quotes
“While we caution against expecting a rapid break higher in the dollar on the back of the payrolls report (we’ve learnt to our cost never to overreact to payrolls), the juxtaposition of better growth data in the US and the opposite in the UK is supportive for a test of 1.50 in cable.”
“Cable is one of the few currencies apart from CHF that screens as expensive to the dollar on an interest rate basis.”
“Next week the limelight will fall on Mark Carney's Mansion House address (Wednesday). We doubt he will try to steer the market's interest rate expectations as explicitly as he did at the event last year, when his warning against interest rate complacency pushed up rate expectations by around 20bp.”
Key Quotes
“While we caution against expecting a rapid break higher in the dollar on the back of the payrolls report (we’ve learnt to our cost never to overreact to payrolls), the juxtaposition of better growth data in the US and the opposite in the UK is supportive for a test of 1.50 in cable.”
“Cable is one of the few currencies apart from CHF that screens as expensive to the dollar on an interest rate basis.”
“Next week the limelight will fall on Mark Carney's Mansion House address (Wednesday). We doubt he will try to steer the market's interest rate expectations as explicitly as he did at the event last year, when his warning against interest rate complacency pushed up rate expectations by around 20bp.”