FXStreet (Mumbai) – The global FX strategy team at Nomura believes the GBP outperformance is likely to continue in the medium term and appears attractive against the low-yielding European currencies.
Key Quotes
“On the flow front, foreign investment into the UK has been very strong, thanks to the ECB’s QE and acceleration in fixed income outflows from the euro area.”
“Even though fixed income flows may have temporary slowed in Q2, owing to Greek uncertainty and higher volatility in the European bond market, going forward strong portfolio flows into the UK from the euro area are likely to continue, supporting GBP even if we don’t have a near-term catalyst for bringing forward BoE rate pricing expectations further.”
(Market News Provided by FXstreet)