BUY GBP/USD (cable)
• For the coming 2 quarters there are not many indications of a stronger dollar apart from an outbreak of risk aversion – rising equity prices will cause USD to weaken.
• US interest rates will remain low and USD is still used as funding currency.
• The undervaluation of GBP is more than 25% and will be offset over time with a resultant sharp strengthening of GBP.
• We expect that the BoE will raise interest rates in Q3 and that the Fed will not raise until Q4. This will support GBP against USD.
BUY GBP/USD (cable) (295KB)
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The recommendations stated on this page are based on information which Jyske Bank finds reliable. Jyske Bank does not assume any responsibility for transactions made on the basis of these recommendations, which can be changed without notice. The information stated on this page may not be copied or published elsewhere.
