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13 Mar 2015
Sterling worst performer among majors – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team comment that Carney ‘pied-pipered’ Sterling down the valley to become the worst performer among majors in the FX space.
Key Quotes
“Sterling was the worst performer in the majors Thursday after BOE Governor Carney noted that the exchange rate could be a factor behind its next tightening cycle."
"Note that the UK’s main trading partner is by far the eurozone, followed by the US and China.”
“As such, EUR/GBP is presumably the cross that Carney will focus on. This pair had been making lows not seen since late 2007 around .7000 earlier this week due to sterling outperformance, but has since corrected higher to trade near .7150.”
“In February, the BIS REER (inflation-adjusted and trade-weighted) for the UK was near its strongest levels since 2008.”
Key Quotes
“Sterling was the worst performer in the majors Thursday after BOE Governor Carney noted that the exchange rate could be a factor behind its next tightening cycle."
"Note that the UK’s main trading partner is by far the eurozone, followed by the US and China.”
“As such, EUR/GBP is presumably the cross that Carney will focus on. This pair had been making lows not seen since late 2007 around .7000 earlier this week due to sterling outperformance, but has since corrected higher to trade near .7150.”
“In February, the BIS REER (inflation-adjusted and trade-weighted) for the UK was near its strongest levels since 2008.”