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22 May 2015
GBP/USD back to 1.5000 in time - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank noted that in two weeks since the UK general election result GBP/USD has trended higher.
Key Quotes:
"With a dip at the start of this week being offset by a recovery on the back of strong UK economic data."
"While it was the surprise news that the UK electorate had voted for a right-leaning majority government that provided the spark for the post election rally, we expect that the optimism will fade as the market turns its attention to the debate about the UK’s future in the EU and to the likelihood that Chancellor Osborne will outline further fiscal austerity at the July 8 budget."
"On the assumption that the Federal Reserve will hike rates in December and so allow for the USD bulls to re-group, we expect that cable will spend much of H2 trading closer to the 1.50 area than current levels."
Key Quotes:
"With a dip at the start of this week being offset by a recovery on the back of strong UK economic data."
"While it was the surprise news that the UK electorate had voted for a right-leaning majority government that provided the spark for the post election rally, we expect that the optimism will fade as the market turns its attention to the debate about the UK’s future in the EU and to the likelihood that Chancellor Osborne will outline further fiscal austerity at the July 8 budget."
"On the assumption that the Federal Reserve will hike rates in December and so allow for the USD bulls to re-group, we expect that cable will spend much of H2 trading closer to the 1.50 area than current levels."