FXstreet.com (Córdoba) - Since the start of the year, the pound saw strong inflows, as it was perceived as a safe haven compared to the euro, says the UBS analyst team. "With this, EURGBP fell strongly and now hit our forecast".
"As the focus shifted recently also to the US problems, namely, US elections, fiscal cliff and possible QE3, investors hesitate buying more USD at EURUSD levels close to 1.20", they add. "We believe that GBP will therefore continue to profit from inflows. At current EURGBP levels, we advise using the USD to fund long GBP positions".
"As the focus shifted recently also to the US problems, namely, US elections, fiscal cliff and possible QE3, investors hesitate buying more USD at EURUSD levels close to 1.20", they add. "We believe that GBP will therefore continue to profit from inflows. At current EURGBP levels, we advise using the USD to fund long GBP positions".
