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29 Jan 2016
EUR/GBP: sell the rallies towards 0.77/0.78 – Westpac
FXStreet (Edinburgh) - Strategist at Westpac Richard Franulovich has argued that a bull run towards the 0.77/0.78 area could be an opportunity to sell the cross.
Key Quotes
“Brexit risk overdone, strong bias in favour of selling EUR/GBP into 0.77/0.78”.
“UK polls have not fared well if the last general election and Scottish independence vote are anything to go by”.
“PM Cameron should emerge from EU membership renegotiations in late Feb with a strong hand, the EU likely to offer plenty of concessions to head-off risks of wider EU exit talk”.
“UK rates markets have gone too far, now leaning toward small odds of a base rate cut by year’s end (20%). ECB easing risk into March another factor that should constrain EUR/GBP upside”.
Key Quotes
“Brexit risk overdone, strong bias in favour of selling EUR/GBP into 0.77/0.78”.
“UK polls have not fared well if the last general election and Scottish independence vote are anything to go by”.
“PM Cameron should emerge from EU membership renegotiations in late Feb with a strong hand, the EU likely to offer plenty of concessions to head-off risks of wider EU exit talk”.
“UK rates markets have gone too far, now leaning toward small odds of a base rate cut by year’s end (20%). ECB easing risk into March another factor that should constrain EUR/GBP upside”.