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26 Jun 2013
GBP/USD risk skewed to the downside - RBS
FXstreet.com (Barcelona) - Traders in the British Pound will now enter a new phase dominated by the arrival of Mark Carney as new BoE Governor. In view of RBS FX Strategist David Simmonds, no policy changes are expected during 2013 and 2014.
Simmonds argues that despite recent UK fundamentals have shown upbeat readings, "the MPC retains a dovish bias and the June Minutes revealed that 'some' of the on-hold majority would be prepared to support further QE in the event of an unwarranted rise in bond yields" Simmonds notes.
Looking at the GBP/USD outlook, the potential outcome of Fed tapering along with renewed risks of easing by the Bank of England, suggests that the risk in the GBP/USD is skewed to the downside.
Simmonds argues that despite recent UK fundamentals have shown upbeat readings, "the MPC retains a dovish bias and the June Minutes revealed that 'some' of the on-hold majority would be prepared to support further QE in the event of an unwarranted rise in bond yields" Simmonds notes.
Looking at the GBP/USD outlook, the potential outcome of Fed tapering along with renewed risks of easing by the Bank of England, suggests that the risk in the GBP/USD is skewed to the downside.