Forex Flash: GBP/USD year-end target at 1.45 – Scotiabank

The sterling has managed to carve a rebound from almost 3-year lows below the key level at 1.5000 to the current levels in the 1.5030/35 region, after hopeful comments by US President Barack Obama on the so-called US ‘sequester’.

After today’s horrible manufacturing PMI print in the UK economy, Camilla Sutton, Chief Currency Strategist at Scotiabank, commented, “The outlook for GBP continues to deteriorate from an economic, monetary and currency perspective. We expect the BoE to turn increasingly aggressive and accordingly have revised down our GBP forecast. We expect GBP to close the year at 1.45”.