GBP: Quietly outperforming – ING
|After all the gyrations in bond markets last week and predictions that the UK would need an IMF bailout, conditions have settled down, ING's FX analyst Chris Turner notes.
EUR/GBP remains contained in a 0.86-0.87 range
"Gilt auctions seem to have been going well, showing that the UK has no problem servicing its debt if the price is right. Today sees £4bn of six-year Gilts auctioned, for reference."
"EUR/GBP remains well contained in a 0.86-0.87 range. Sterling's high-yield status makes it an expensive sell, and unless there is some imminent bad news expected, sterling can hold its own at these levels. Next week's Bank of England rate meeting should, in theory, keep sterling supported unless upcoming jobs and CPI releases very much surprise on the downside."
"We're still happy with our calls that EUR/GBP ends the year near 0.87 and GBP/USD near 1.38 as the dollar bear trend dominates."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.