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17 Apr 2015
Credit Agricole: Scope for GBP outperformance limited - eFXnews
FXStreet (Barcelona) - The eFXnews Team notes Credit Agricole views that the UK election related uncertainty might limit the scope for GBP outperformance.
Key Quotes
“We are conscious of the fact that the pre-election uncertainty is here to stay. We therefore suspect that the scope for GBP-outperformance is limited for now.”
“That said, it also seems that a lot of negatives seem to be in the price:
Fears about Conservatives win and Brexit may not fully reflect changing attitudes towards UK's EU membership. Indeed, recent YouGov polls seem to point at growing support of the latter.
Labours handling of the economy may not be as damaging. In a recently published survey, Oxford Economics estimates that the UK economy could grow faster under Labour than under the Conservatives.
Political uncertainty associated with hung parliament is here to stay but that seems to be the setting in many other European countries successfully governed by coalition or minority governments.”
“We think that the short-term squeeze in GBP can continue.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“We are conscious of the fact that the pre-election uncertainty is here to stay. We therefore suspect that the scope for GBP-outperformance is limited for now.”
“That said, it also seems that a lot of negatives seem to be in the price:
Fears about Conservatives win and Brexit may not fully reflect changing attitudes towards UK's EU membership. Indeed, recent YouGov polls seem to point at growing support of the latter.
Labours handling of the economy may not be as damaging. In a recently published survey, Oxford Economics estimates that the UK economy could grow faster under Labour than under the Conservatives.
Political uncertainty associated with hung parliament is here to stay but that seems to be the setting in many other European countries successfully governed by coalition or minority governments.”
“We think that the short-term squeeze in GBP can continue.”
This content has been provided under specific arrangement with eFXnews.