Back
21 Feb 2014
Flash: Sterling is remarkable - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman said, "Although the British pound is slightly lower on the week, its resilience remains remarkable".
Key Quotes:
“It made a new low for the week, near $1.6615 in response to the 1.5% decline in January retail sales, but quickly rebounded to new session highs (~$1.6680)."
"Better than expected public finances for January were reported at the same time and may have aided sterling's recovery. Recall that the December retail sales jumped 2.5% (revised from 2.6%), so January appears to be some payback."
"Taken together it is a 0.5% monthly average, which is quite respectable given that the 12-month average is 0.3% and the 6-month average is flat. Note that on the week, the implied yield of the December 14 and March 15 short sterling futures contract has fallen 5-6 bp."
"The soft CPI (and other data) as well as comments from the BOE's Weale and Bean seemed to endorse the market's view that a rate hike is still a year away. For the record, gilt yields are unchanged on the week."
Key Quotes:
“It made a new low for the week, near $1.6615 in response to the 1.5% decline in January retail sales, but quickly rebounded to new session highs (~$1.6680)."
"Better than expected public finances for January were reported at the same time and may have aided sterling's recovery. Recall that the December retail sales jumped 2.5% (revised from 2.6%), so January appears to be some payback."
"Taken together it is a 0.5% monthly average, which is quite respectable given that the 12-month average is 0.3% and the 6-month average is flat. Note that on the week, the implied yield of the December 14 and March 15 short sterling futures contract has fallen 5-6 bp."
"The soft CPI (and other data) as well as comments from the BOE's Weale and Bean seemed to endorse the market's view that a rate hike is still a year away. For the record, gilt yields are unchanged on the week."