19 Dec 2014
Sterling between bullish dollar and bearish euro - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted the conditions surrounding the pound.
Key Quotes:
"Sterling is uninspired. It is caught between the strength of the dollar and the weakness of the euro (and Swiss franc)."
"Since mid-November sterling has been confined to a $1.56-1.58 trading range. There have been a handful of violations of this two-cent range, but it has largely held."
"Against the euro, sterling has been in a wider range. Since September it has been peaking in the GBP0.8000-50 area and bottoming in the GBP0.7800 area."
"The divergence between the UK and euro area will become more pronounced. However, political uncertainty, especially with the Scottish Nationals indicating they are willing to cut a deal with Labour, may detract from sterling’s advantage".
"Meanwhile, the FTSE has recouped 61.8% of its week-long decline."
Key Quotes:
"Sterling is uninspired. It is caught between the strength of the dollar and the weakness of the euro (and Swiss franc)."
"Since mid-November sterling has been confined to a $1.56-1.58 trading range. There have been a handful of violations of this two-cent range, but it has largely held."
"Against the euro, sterling has been in a wider range. Since September it has been peaking in the GBP0.8000-50 area and bottoming in the GBP0.7800 area."
"The divergence between the UK and euro area will become more pronounced. However, political uncertainty, especially with the Scottish Nationals indicating they are willing to cut a deal with Labour, may detract from sterling’s advantage".
"Meanwhile, the FTSE has recouped 61.8% of its week-long decline."