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9 Aug 2013
Flash: All Quiet on the Western Front – Societe Generale
FXstreet.com (Barcelona) - Sebastien Galy, strategist at Societe Generale, notes events around Sterling.
Key Quotes:
“The UK trade balance was better than expected as was construction which had surprisingly little impact on EUR/GBP given that it suggests that the UK economy is confirming signs of a cyclical recovery”.
“Brian expects that either inflation or growth will force the BoE to change course earlier than it expects. Eventually, cheap talk will be confronted versus economic reality. GBP/USD stabilizing around MA(200) at 1.5530 and odds after some tactical washout it gently drifts higher”.
“EUR/GBP downside might eventually be a great trade but it is far too early”.
Key Quotes:
“The UK trade balance was better than expected as was construction which had surprisingly little impact on EUR/GBP given that it suggests that the UK economy is confirming signs of a cyclical recovery”.
“Brian expects that either inflation or growth will force the BoE to change course earlier than it expects. Eventually, cheap talk will be confronted versus economic reality. GBP/USD stabilizing around MA(200) at 1.5530 and odds after some tactical washout it gently drifts higher”.
“EUR/GBP downside might eventually be a great trade but it is far too early”.