29 Jan 2015
UK market outlook; Pound to outperform on crosses - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that fixed income is bid globally and the UK is no exception.
Key Quotes:
"We expect a firm bid to be maintained for duration throughout the first half of 2015; however, we don’t think that the risk/reward to be long gilts is particularly attractive here, leaving few trading opportunities beyond short-term, tactical considerations."
"FX volatility is expected to remain heightened, with GBP vulnerable to May electoral risks."
"The pound should outperform on the crosses in the longer-term; however, and we recommend entering into short EUR/GBP and long GBP/CAD positions while awaiting better levels to go long GBP/NOK."
Key Quotes:
"We expect a firm bid to be maintained for duration throughout the first half of 2015; however, we don’t think that the risk/reward to be long gilts is particularly attractive here, leaving few trading opportunities beyond short-term, tactical considerations."
"FX volatility is expected to remain heightened, with GBP vulnerable to May electoral risks."
"The pound should outperform on the crosses in the longer-term; however, and we recommend entering into short EUR/GBP and long GBP/CAD positions while awaiting better levels to go long GBP/NOK."