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6 Aug 2013
Flash: GBP/USD upside at risk – UBS
FXstreet.com (New York) - The ECB and BoE decisions last week yielded very different flow results: the euro was the best-performing currency on the week and sterling the polar opposite, suggests Gareth Berry, a Research Analyst at UBS.
Key quotes
Nonetheless, “we note that bulk of the accumulation (EUR buying, GBP selling) occurred before the respective decisions, and it appears there was not enough final content from Draghi and Carney for a flow reversal ex-post.”
“The EUR/GBP stood out with heavy asset manager buying ahead of the BoE, as this is where the bulk of GBP shorts were accumulated. Current positioning points to upside risk for GBP vs. EUR and USD should the inflation report results in conservative forward guidance parameters.”
Key quotes
Nonetheless, “we note that bulk of the accumulation (EUR buying, GBP selling) occurred before the respective decisions, and it appears there was not enough final content from Draghi and Carney for a flow reversal ex-post.”
“The EUR/GBP stood out with heavy asset manager buying ahead of the BoE, as this is where the bulk of GBP shorts were accumulated. Current positioning points to upside risk for GBP vs. EUR and USD should the inflation report results in conservative forward guidance parameters.”