8 Jan 2016
GBP/USD h1 bearish - BTMU
FXStreet (Guatemala) - Analysts at Bank of Tokyo Mitsubishi explained that they expect the pound to continue to underperform during the first half this year.
Key Quotes:
"Short-term yield spreads are likely to move further against the pound and in favour of the US dollar as the Fed continues to gradually raise rates ahead of the Bank of England. We have pushed back our forecast for the timing of the first Bank of England rate hike from May until August.
We still believe that the Bank of England will begin to raise rates sooner than the current market expectation of no rate hikes until next year. However, we doubt that the market will adjust soon enough to offer material support for the pound during the first half of this year. Rather we are expecting the pound to rebound later this year."
Key Quotes:
"Short-term yield spreads are likely to move further against the pound and in favour of the US dollar as the Fed continues to gradually raise rates ahead of the Bank of England. We have pushed back our forecast for the timing of the first Bank of England rate hike from May until August.
We still believe that the Bank of England will begin to raise rates sooner than the current market expectation of no rate hikes until next year. However, we doubt that the market will adjust soon enough to offer material support for the pound during the first half of this year. Rather we are expecting the pound to rebound later this year."