15 Jan 2014
Flash: GBP support by economic recovery for now - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale feels that GBP will be supported by strength of UK recovery for now.
Key Quotes
"The pound will continue to be supported for now by the strength of the economic recovery. But this is just a short-term recovery from weak levels."
"Over-easy monetary policy, a bias towards 'macro-prudential' solutions to the imbalances caused by easy monetary policy and a lack of long-term vision from policy-makers to tackle the imbalances in the economy - both sector and regional - have produced a low savings rate, a low investment rate, a large current account deficit and economic inequality."
"Maybe all of those were simply necessary side-effects of the policies put in place to get the economy back onto an even keel after 2008, but they are not helpful now. I suspect GBP/USD is going to see 1.40 long before it gets back to 1.70."
Key Quotes
"The pound will continue to be supported for now by the strength of the economic recovery. But this is just a short-term recovery from weak levels."
"Over-easy monetary policy, a bias towards 'macro-prudential' solutions to the imbalances caused by easy monetary policy and a lack of long-term vision from policy-makers to tackle the imbalances in the economy - both sector and regional - have produced a low savings rate, a low investment rate, a large current account deficit and economic inequality."
"Maybe all of those were simply necessary side-effects of the policies put in place to get the economy back onto an even keel after 2008, but they are not helpful now. I suspect GBP/USD is going to see 1.40 long before it gets back to 1.70."