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25 Feb 2014
Flash: GBP and EUR strengths becoming a concern - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained Central Bankers positions on currency strengths.
Key Quotes:
"The BOE's McCafferty warned that sterling's appreciation may impact MPC decisions, and that further sterling strength would be worrisome, though the current rate is not a major problem for exporters. On rates, McCafferty noted that expectations for Q2 2015 hike are "not unreasonable" and chance of an earlier or later hike are well balanced."
"The market demurs. The short-sterling futures curve clear implies asymmetrical risk of an earlier move."
"In any event, McCafferty is not the only official talking about exchange rates. France's Montebourg continues to press his line that euro strength is unwarranted and should be resisted. He argues that the ECB is not respecting its inflation target."
Key Quotes:
"The BOE's McCafferty warned that sterling's appreciation may impact MPC decisions, and that further sterling strength would be worrisome, though the current rate is not a major problem for exporters. On rates, McCafferty noted that expectations for Q2 2015 hike are "not unreasonable" and chance of an earlier or later hike are well balanced."
"The market demurs. The short-sterling futures curve clear implies asymmetrical risk of an earlier move."
"In any event, McCafferty is not the only official talking about exchange rates. France's Montebourg continues to press his line that euro strength is unwarranted and should be resisted. He argues that the ECB is not respecting its inflation target."