2014 predictions: Cable- the only way is up
Cable is headed much higher still. The market is only starting to turn bullish having missed the first move from 1.52/1.53 but I don’t think the market is long yet.
- Economic data out of the UK remains very strong;
- Keep a close eye on the EZ banking rules as we could see a big movement of funds into the UK in Q1;
- The GBP is only just returning to more neutral long-term levels on some of the crosses;
- I’m still very bearish on the EUR/GBP cross and this we could see .75 next year.
Prediction: We won’t see levels below 1.60 in 2014 and I expect to see cable trading above 1.80 at times next year.