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2 Apr 2015
EUR up, GBP down – Westpac
FXStreet (Edinburgh) - According to Strategist Sean Callow at Westpac, the single currency remains poised for a near term rebound, whereas further pullbacks awaits the sterling.
Key Quotes
“As for other major pairs, we remain inclined to further upside on EUR and are still bearish sterling”.
“The ECB’s QE program is barrelling along, with EUR41bn in government bonds bought with new money in just 3 weeks and President Draghi rejecting talk that the program might not run its course”.
“This should weigh on EUR/USD medium term but short term, European data has improved while the USD outlook is a little shaky”.
“As for the pound, inflation is on track to turn negative y/y in the next update while the election campaign adds some political risk to GBP”.
“This should lift in time as it did after the Scotland referendum. But for now it is hard to ignore”.
Key Quotes
“As for other major pairs, we remain inclined to further upside on EUR and are still bearish sterling”.
“The ECB’s QE program is barrelling along, with EUR41bn in government bonds bought with new money in just 3 weeks and President Draghi rejecting talk that the program might not run its course”.
“This should weigh on EUR/USD medium term but short term, European data has improved while the USD outlook is a little shaky”.
“As for the pound, inflation is on track to turn negative y/y in the next update while the election campaign adds some political risk to GBP”.
“This should lift in time as it did after the Scotland referendum. But for now it is hard to ignore”.