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29 Dec 2014
Morgan Stanley: GBP/USD might see 1.45 levels – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes Morgan Stanley comments on the correlation of GBP with UK’s house prices, and further anticipates the GBP/USD pair to decline towards 1.45 levels in 2015.
Key Quotes
“The current inflation dynamics are also likely to make it difficult for the MPC to send a signal that it is preparing for a rate hike, keeping rate hike expectations focused on the latter part of 2015/early 2016. House prices are also showing their seasonal slow down in December, a highlighted by the Rightmove survey.”
“GBP has maintained its recent high level of correlation to house prices (around 75%) also suggesting that GBPUSD is set to maintain the mediumterm downtrend.”
“Any near-term GBP strength, we would expect, would be evident against the EUR, with EURGBP still having the potential to test the 0.7765 lows from September. We continue to expect a GBPUSD decline towards 1.45 in 2015."
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“The current inflation dynamics are also likely to make it difficult for the MPC to send a signal that it is preparing for a rate hike, keeping rate hike expectations focused on the latter part of 2015/early 2016. House prices are also showing their seasonal slow down in December, a highlighted by the Rightmove survey.”
“GBP has maintained its recent high level of correlation to house prices (around 75%) also suggesting that GBPUSD is set to maintain the mediumterm downtrend.”
“Any near-term GBP strength, we would expect, would be evident against the EUR, with EURGBP still having the potential to test the 0.7765 lows from September. We continue to expect a GBPUSD decline towards 1.45 in 2015."
This content has been provided under specific arrangement with eFXnews.