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21 Dec 2015
GBP/USD could fall below 1.4000 - BTMU
FXStreet (Guatemala) - Analysts at Bank of Tokyo mitsubishi explained the first half of 2016 is likely to see greater pound volatility as the BOE begins to signal a shift in monetary stance while uncertainty related to the ‘Brexit’ referendum increases.
Key Quotes:
"GBP/USD could fall to the low 1.4000’s during this period but ultimately we make two assumptions that should mean by mid-year GBP/USD is above the 1.5000 level – firstly the BOE tightens policy in May and secondly the “Remain” campaign wins the “Brexit” referendum in June. We then see further upside in H2 2016 with year-end GBP/USD and EUR/GBP targets of 1.5600 and 0.6800."
Key Quotes:
"GBP/USD could fall to the low 1.4000’s during this period but ultimately we make two assumptions that should mean by mid-year GBP/USD is above the 1.5000 level – firstly the BOE tightens policy in May and secondly the “Remain” campaign wins the “Brexit” referendum in June. We then see further upside in H2 2016 with year-end GBP/USD and EUR/GBP targets of 1.5600 and 0.6800."