FXstreet.com (Barcelona) – The pound is likely to pick up increased interest on any further EUR diversification flows, according to Jean Foley, Senior Currency Strategist. Despite better data this morning UK fundamentals remain poor when viewed in isolation. “Relative to the currencies such as the NOK and the SEK sterling has the benefit of much better liquidity. The BoE cited in the minutes of the June policy meeting a reluctance to cut rates any further implying a preference to tackle downside risk to growth and inflation with increased QE.” She said. “EUR/GBP looks to be drawing a new lower trading range at present. Below EUR/GBP0.7900 likely to see towards the EUR/GBP0.7850 area.” She forecasted.
