Indeed, the GBP looks as if it can push sub 1.5000 as the currency looses the ‘safe haven’ status gained through last year’s European crisis. Additionally, “the EUR/GBP can trade as high as 89/90 if nothing untoward emerges from the Italian elections. However, at these levels sterling starts to look very cheap to us and our interest in beginning to buy GBP on crosses will rise. While GBP may fall a bit further, weighed down by Moody’s blues, the fact it has slid by some 7% versus the US$ so far this year argues against this being the beginning of a new secular trend.” Rennie adds.
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