GBP/USD: bullish bias as data continues to defy expectations - BTMU
|Analysts from The Bank of Tokyo-Mitsubishi UFJ, expect the GBP/USD pair to move with a bullish bias next week, between 1.2300 and 1.2700.
Key Quotes:
“Given our bias for the yen and the euro, we will be consistent and assume the same for the pound as well. We would also certainly argue that from a fundamental perspective there are better grounds for the pound to perform well than the yen or the euro. Revised Q4 GDP data resulted in a modest upward revision in the Q/Q rate from 0.6% to 0.7% due to the largest contribution to overall growth from net trade since 2011."
"The devaluation of the pound is playing a role in isolating the UK from the negative implications related to Brexit uncertainty. The House of Lords will hold the Committee Stage review of the Article 50 bill and there may yet be an attempt to add an amendment forcing a parliamentary say earlier than at the very end of the Brexit negotiation period. But we do not expect these proceedings to have any impact on the pound."
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.