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HSBC Recommend Long EUR/GBP

EURGBP

HSBC recommend going long EUR/GBP at GBP0.8545, targeting a move to GBP0.8680, with a stop set at GBP0.8480.

  • They suggest that “softer than expected UK labour data raises the risk of a more dovish tilt from the Bank of England on 21 March.”
  • They also believe that “the ECB looks unlikely to change course before June, and with rates markets well priced for that likelihood, downside risks for EUR seem more limited.”
  • They also flag that “EUR/GBP has already been lagging rate differentials which have historically been a consistently strong driver of the pair.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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