GBP likely to outperform in the aftermath of ECB – Nomura

By FXStreet FXStreet (Delhi) – Research Team at Nomura, suggest that the ECB’s dovish stance should accelerate foreign portfolio flows into the UK while positive risk sentiment will likely be the most positive for GBP among European G10 currencies.

Key Quotes

“Among European G10 central banks, we judge the Riksbank and SNB are most likely to follow the ECB’s dovish stance, while any impact on the policy stances of the BoE and Norges Bank is likely to be limited at this stage.”

“The SNB’s reaction should be more passive than the Riksbank’s, as the SNB likely has fewer policy options than the Riksbank.”

“We expect the BoE to start hiking in May next year, soon after the Fed lift-off, even after the ECB’s renewed dovish stance unveiled yesterday. The surprising ECB stance increases our conviction in GBP outperformance into 2016, and we continue to look for an opportunity to buy GBP against low-yielding European G10 currencies.”
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Source:: FX Street