Monday, May 11, 2009

BNP Paribas and Commerzbank on the prospects for euro / pound

Euro / pound continues to be in demand and is currently testing Ofer about stg0.9020/30, break above which will open the way to further growth in the direction of stg0.8950/55, while BNP Paribas currency strategists believe that the ability of couples to rise above stg0.9020 is evidence of the potential for continued recovery in the direction of stg0.9250. Analysts Commerzbank, meanwhile, are not so optimistic. They believe that the couple may well test the peaks around March stg0.9082, given the deteriorating mood in the British currency against the decision of the Bank of England to increase purchases of securities on stg50 billion in Commerzbank consider that the pound is likely to continue to feel under pressure in anticipation of the Report on inflation, the central bank (approx. ProFinance.ru: Publication will be held on Wednesday), which could clarify the market, why the Bank of England decided to increase the extent of quantitative easing. Nevertheless, the bank's strategists doubt that we will see steady growth in the euro / pound above stg0.9082, taking into account that the recent actions of the ECB left some questions open.

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