untitled design

GBP/USD the focus is on 1.20 – SocGen

In the opinion of Kit Juckes, chief currency strategist at Société Générale, there will be many central bank meetings this week, but none of them could stop the recovery of the dollar.

A weak Euro will help keep EUR/CHF lower

In the G10, I don’t think central banks will dominate the currency outlook as much as they did six months ago. Growth prospects matter more, and in that sense, perhaps the long end of the yield curve also matters more than rates.

The Euro didn’t get any help from last week’s ECB rate hike and the British Pound may not get much from the Monetary Policy Committee meeting. Gilt sales are likely to be announced, but will rising yields attract buyers or lead to a loss of confidence? GBP/USD has 1.20 in its sights. The CPI (Wednesday) and retail sales (Friday) also deserve attention.

As for the SNB, Riksbank and Norges Bank, if all three increase their rates by 25 basis points, the Swedish krona could be the currency that benefits the least. The internal worries are too great. The Norwegian krone is favored by oil prices, even if global jitters don’t help, and a weak euro will help keep EUR/CHF lower.

Source: Fx Street

You may also like

Most popular