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Aberdeen has successfully entered the long pound, waiting for 1.42

Schedule pound to dollar at intervals of 4 hours

Aberdeen Standard Investments went long on the pound against the dollar. Prior to that, she was neutral in the pair. The company said the market is underestimating the good news about vaccinations and the resumption of the UK economy.

Three months later, the pound / US dollar could rise to 1.42 before US yields resume gains and pull back down to around 1.36, fund manager James Eti predicted in an email commentary. The firm bought the pound on April 8 and expects an influx of international capital to the UK.

“We believe that the positive news from the US is well reflected in the price, while we think the market is underestimating the good news this side of the ocean.” “The discount in the price of British assets is also too great”; bond yields look too low compared to economic growth, inflation and the Bank of England’s forecast.

Mark Dowding, chief investment officer of BlueBay Asset Management LLP, on the other hand, still promises to further weaken the pound. “In the short term, we think that the victory of the Scottish nationalist parties does indeed pose a risk of a decline in the pound in the future for an independence referendum”; The Scottish elections will take place on 6 May.

Also read  EM Currencies Fall on Hints of US Rate Hike

The GBP / USD rate fell for the third day in a row – by 0.2% to 1.3900 – on Thursday.

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