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13 Feb 2014
Flash: Sterling’s three high in sight - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman said the 3-year high set in late January just below $1.6670 is within spitting distance.
Key Quotes:
"Sterling's gains, extending yesterday's rally, are more understandable. Simply put, the market is pricing in risk that the BOE hikes rates earlier than the BOE thinks, though the debt market is consolidating after big moves yesterday."
"There is a relatively wide premium over Germany for 10-year bonds. The BOE and CBI have revised higher growth forecasts."
"The 3-year high set in late January just below $1.6670 is within spitting distance, but short-term technicals suggest the market is stretched and, even if a new high is made, it may not be sustainable. At the minimum, some consolidation is seen ahead, perhaps after the US retail sales report which is the main event in the North American session. Yellen was to testify before the Senate today, but due to the winter storm, it has been delayed."
Key Quotes:
"Sterling's gains, extending yesterday's rally, are more understandable. Simply put, the market is pricing in risk that the BOE hikes rates earlier than the BOE thinks, though the debt market is consolidating after big moves yesterday."
"There is a relatively wide premium over Germany for 10-year bonds. The BOE and CBI have revised higher growth forecasts."
"The 3-year high set in late January just below $1.6670 is within spitting distance, but short-term technicals suggest the market is stretched and, even if a new high is made, it may not be sustainable. At the minimum, some consolidation is seen ahead, perhaps after the US retail sales report which is the main event in the North American session. Yellen was to testify before the Senate today, but due to the winter storm, it has been delayed."