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27 Apr 2015
GBP/USD on the up due to interest rate expectations - HSBC
FXStreet (Guatemala) - David Bloom, Global Head of FX Research & team explained that the recent rise in GBP/USD has been due to cyclical factors.
Key Quotes:
"The very recent rise in GBP/USD has been due to the interest rate differential rather than a reduction in political risk."
"For the moment, the cyclicality of the US vs the UK is driving the currency."
"The recent cyclical move up in GBP/USD can be explained by the rate expectations in the UK."
"UK rate expectations have been rising, particularly since the release of the BoE minutes on 22 April."
"In contrast, since the start of April, the US rate expectations have been
moving in the opposite direction given the recent US data disappointments."
Key Quotes:
"The very recent rise in GBP/USD has been due to the interest rate differential rather than a reduction in political risk."
"For the moment, the cyclicality of the US vs the UK is driving the currency."
"The recent cyclical move up in GBP/USD can be explained by the rate expectations in the UK."
"UK rate expectations have been rising, particularly since the release of the BoE minutes on 22 April."
"In contrast, since the start of April, the US rate expectations have been
moving in the opposite direction given the recent US data disappointments."