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19 Aug 2013
Flash: GBP/USD average valuation set at only 1.5000 – Investec
FXstreet.com (New York) - The major theme in London last week was the GBP/USD’s appreciation against the backdrop of a commitment from Mark Carney to an extended period of low rates in the UK, notes Jonathan Pryor, Corporate Treasurer at Investec.
Key quotes
The Bank of England’s Inflation Report and the introduction of forward guidance has so far satisfied markets that the Bank of England have their house in order, which has allowed investors to pay closer attention to the wave of better than expected economic data.
It’s bit of a quieter week for UK data this week but the undoubted highlight will be the second revision of Q2 GDP, although the general consensus is for it to be unrevised at +0.6% quarter on quarter, many believe it could surprise to the upside.
Remaining on the economic outlook for now, it was reported in the weekend press that a retail revival across Britain during the sun swept July has given the wider economy a significant boost. “We’ve already witnessed the positive effect this had on retail sales last week and it will undoubtedly help Q3 GDP when the first estimate is reported in October. The GBP/USD finished last week in fine health, where it has settled in the 1.5600’s, which is some feat when compared to the average forecast amongst top banks of 1.5000.”
Key quotes
The Bank of England’s Inflation Report and the introduction of forward guidance has so far satisfied markets that the Bank of England have their house in order, which has allowed investors to pay closer attention to the wave of better than expected economic data.
It’s bit of a quieter week for UK data this week but the undoubted highlight will be the second revision of Q2 GDP, although the general consensus is for it to be unrevised at +0.6% quarter on quarter, many believe it could surprise to the upside.
Remaining on the economic outlook for now, it was reported in the weekend press that a retail revival across Britain during the sun swept July has given the wider economy a significant boost. “We’ve already witnessed the positive effect this had on retail sales last week and it will undoubtedly help Q3 GDP when the first estimate is reported in October. The GBP/USD finished last week in fine health, where it has settled in the 1.5600’s, which is some feat when compared to the average forecast amongst top banks of 1.5000.”