OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash: GBP/USD to move into a 1.45-1.55 range - RBS

The Sterling has been trading under pressure against the Greenback in the last weeks and after declining around 1350 pips since February 1st high at 1.6335, the GBP/USD seems to have found some support at 1.5000 where the pair built a consolidation movement.

RBS' analyst Paul Robson believes that the GBPUSD is moving into a 1.45-1.55 range, with risks skewed to the downside. "While we believe that GBP fundamentals have deteriorated further, and this will keep the pressure on GBP/USD, we do expect a kicker from a stronger USD tone from concerns over Italy."

"This may mean that EUR/GBP falls at the same time as GBP/USD falls. The USD part has led us to lower our assumed profile for GBP/USD," points Robson. Currently the GBP/USD is itching higher and trading at 1.5070, 0.20% above opening price action. "We now see GBP/USD moving into a 1.45-1.55 range, with risks skewed to the downside," concluded RBS' analyst.

The bank expects the Pound to remain below the 1.5000 level across the 2013. RBS' forecasts are March: 1.4800; Q2 1.4600; Q3: 1.4900 to end the year at 1.4900.

Forex Flash: Eurozone GDP projections cut to -0.8% – Deutsche Bank

“For the EU, the immediate consequence of the Italian election is, in our view, the risk of the ‘Brussels consensus’ (fiscal austerity coupled with structural reform) losing its appeal. Pushing ‘new fiscal realism’ beyond automatic stabilizers will be a temptation, however the question is whether markets accept the higher level of debt.” writes Giles Moec at Deutsche Bank. It is not in German or ECB interests to rock-the-boat, but markets are not necessarily pricing this new configuration yet.
Read more Previous

Forex Flash: Contraction of risks to benefit stocks and earnings growth – Goldman Sachs

The rise in the equity risk premium over the last few years led investors to place high premium on companies with stable growth prospects, particularly top-line growth. This has benefitted our stable growers basket and sectors such as food & beverages, which is currently trading at a record premium to the market.
Read more Next
Start livechat