HSBC - "GBP-USD is likely to fall further. UK monetary policy is seeking to distance itself from the less dovish tone emanating from the US Fed. Such a divergence in policy is a rare event in UK-US economic history, and has been associated with GBP-USD weakness in the past. In addition, while the path of policy in both countries will be determined by the economic data, here too the risks are skewed towards the GBP weakness."

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Comment by Omkar Godbole on July 19, 2013 at 2:40pm

You are write. The monetary policy expectations out of Fed and BOE are divergent. higher the US Yeilds - higher UK yeilds - dovish BOE. There is no another way to suppress long term rates in UK. GBPUSD and GBPJPY both are big sell trades. 


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