Fundamental refocus to benefit GBP – BNP

By FXStreet FXStreet (Delhi) – Research Team at BNP Paribas, suggest that BoE Governor Carney’s speech on Wednesday focused on the UK EU membership and was careful to offer a balanced view of the pros and cons.

Key Quotes

“On Thursday the focus shifts to September retail sales where our economists expect a robust report showing a 0.5% m/m headline gain. The numbers would bode well for the advance Q3 GDP report next week and we continue to see the GBP as undervalued relative to its positive macro story.”

“We are positioned short EURGBP in our spot recommendations portfolio targeting a move to 0.7000. Elsewhere, another large Australian mortgage lender increased lending rates by 15bp. To the extent that this restrains the housing market, it could result in rates markets re-pricing RBA easing sooner (a 25bp cut is currently priced by February next year).”
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Source:: FX Street