HSBC - "At the moment the market is seeing excellent UK data but only moderate-to-disappointing US data and that is pushing GBP higher. This is not a situation we believe will persist. UK monetary policy will eventually 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. We do not believe the current situation of excellent UK data coupled with moderate US data will persist. Indeed if it does Gilt yields will push a lot higher thereby dampening the economy a phenomena that seems to be happening in the US. Once the dust has settled we believe the US will be tapering and UK rate rises will be a long time in coming – a situation that will slowly but surely undermine GBP."