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May 16 - 09:48 AM
GBP: Historical Chart: 'Too Low To Sell, Too Soon To Buy' - SocGen
First appeared on eFXplus on May 16 - 08:36 AM

Societe Generale Research discusses discusses GBP outlook via plotting a sterling real effective exchange rate showing how sterling eventually recovered after the three big crises we saw before the EU one.

n22.PNG 

"The late 70s were helped by North Sea oil, the mid-90s by Bank of England independence and a strong economic recovery, the 2012-2015 period by strong growth. When all the dust settles, the UK economy will move from Brexit and in the absence of inflation, sterling will bounce too. But there are still months of uncertainty ahead and the market is worried about the possibility both of a Labour Government and a no-deal Brexit. EUR/GBP has risen for 9 days in a row, but it's still below the 2019 average," SocGen notes. 

"Will think about shorting at 0.88, and still regretting not buying euros at GBP 0.85," SocGen adds. 

Source:
Société Générale Research/Market Commentary

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