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Getting short EUR/GBP - RBC

FXStreet (Guatemala) - The FX Strategy Team at RBC Capital Markets explained that with the first UK rate hike not fully discounted until early-2017, the hurdle is low for this week’s MPC minutes and BoE speakers to be taken as GBP-positive.

Key Quotes:

"The near certainty of a December Fed hike the more measured ECB easing than expected should also help clear the way for a hike earlier than the market is priced for. We think last week’s EUR rally should be seen as a one-off rerating, not the start of trend, and we therefore take the 200pt rally in EUR/GBP as an opportunity to position for the downtrend quickly reestablishing itself."

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