Back
12 Nov 2014
The Old Lady snores, but sterling can roar – DB
FXStreet (Barcelona) - Oliver Harvey, Macro Strategist at Deutsche Bank sees capital flows as the main driver of sterling into year end.
Key Quotes
“In particular, the UK is best placed to benefit from yield-seeking fixed income outflows from the Eurozone, and it’s worth noting that the large pre-crisis overweight in foreign holdings of gilts has now been covered, allowing plenty of potential for inflows to resume.”
“We continue to be bearish EUR/GBP, targeting 0.77 by year end.”
Key Quotes
“In particular, the UK is best placed to benefit from yield-seeking fixed income outflows from the Eurozone, and it’s worth noting that the large pre-crisis overweight in foreign holdings of gilts has now been covered, allowing plenty of potential for inflows to resume.”
“We continue to be bearish EUR/GBP, targeting 0.77 by year end.”