RBS: what to expect from GBP?
Strategists at RBS maintain a cautious view on the British currency. Despite the “No” Scottish vote, markets have no reasons to expect an earlier hate hike from the Bank of England.
The cable will remain a Fed-driven currency in the near term, analysts say. “We look for the USD uptrend to remain intact and hold to our 1.6000 or below year-end target for GBP/USD”, analysts explain.
As for the EUR/GBP, low ECB rates will stay a negative factor, pushing the cross lower over the coming year.