GBP/USD: Calls for parity may begin to emerge – TDS
|The forecast of 1.11 for cable now looks to be in need of re-examination, in the opinion of economists at TD Securities who believe that markets need to consider how non-trivial a move to parity for GBP/USD may be.
Higher new range for EUR/GBP within 0.90-0.92
“With the UK proposing to blow up its budget deficit, a weakening balance of payments backdrop should keep downside pressure on the currency.”
“Our year-end forecast of 1.11 for cable is now at risk of looking too high and we will not be surprised if calls for parity begin to emerge.”
“EUR looks better situated, for now, versus GBP. The move above 0.88 sets the stage for a higher new range bound by 0.90-0.92.”
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.