13 Jul 2015
GBP the other G10 bright spot – Goldman Sachs
FXStreet (Mumbai) - The FX strategy team at Goldman Sachs sees the GBP as another bright spot among G10 currencies after the US dollar.
Key Quotes
“Strong data in the UK keeps us positive on the GBP, particularly vs the EUR and commodity currencies.”
“The recent rise in wage growth is an important development, which gives us confidence in the underlying price pressures despite low readings on CPI.”
“Recent Sterling strength, however, is contributing to lower headline inflation – and for this reason is on the Bank of England’s radar. The impact of the currency on UK inflation is one reason why we expect the Bank of England to hike only after the Fed ‘lift-off’.”
“For this reason, we prefer to express Sterling strength against the EUR and commodity currencies.”
Key Quotes
“Strong data in the UK keeps us positive on the GBP, particularly vs the EUR and commodity currencies.”
“The recent rise in wage growth is an important development, which gives us confidence in the underlying price pressures despite low readings on CPI.”
“Recent Sterling strength, however, is contributing to lower headline inflation – and for this reason is on the Bank of England’s radar. The impact of the currency on UK inflation is one reason why we expect the Bank of England to hike only after the Fed ‘lift-off’.”
“For this reason, we prefer to express Sterling strength against the EUR and commodity currencies.”