- Analytics
- News and Tools
- Market News
- GBP: Vulnerable to more weakness ahead - Credit Agricole
GBP: Vulnerable to more weakness ahead - Credit Agricole
eFXdata reports that Credit Agricole CIB Research discusses GBP outlook and adopts a tactical bearish bias in the near-term.
"The positive seasonality effect that has been propping up the GBP so far in April is running out of steam. Moreover, the UK economy is continuing to slow down precipitously and the still-elevated number of Covid-19 cases is seemingly making Boris Johnson's government reticent to consider measures to ease the lockdown.
The GBP also seems disadvantaged by the fact that big multinational commodity producers are listed in the UK and thus render the FTSE (and the GBP) more highly correlated with swings in global commodity prices and risk sentiment. In addition, investors could start worrying about Brexit all over again in the coming weeks, as the June deadline to extend the Brexit transition period draws into view. In all, Brexit uncertainty could rear its ugly head again and weigh on the GBP before long," CACIB notes.
"Next week's data calendar is relatively empty, leaving markets to focus on the evolution of the Covid-19 pandemic and the looming clash over the Brexit transition period," CACIB adds.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
