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Forex pairs in this Article » GBP/USD, EUR/GBP (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec notes that there has been some market chatter once again suggesting that the Vodafone pay out to their shareholders from the Verizon stake-sale could add some demand to GBP in the coming weeks.

Key Quotes

“How much of this actually materialises still needs to be seen but the chatter alone could stoke some GBP demand in the build up and our traders will closely be monitoring resistance levels in GBP/USD and GBP/EUR given the rumours.”

“Also worth noting is that the International Monetary Fund (IMF) is widely expected to upgrade the UK’s GDP growth forecast today. It is expected that they will say revise their growth expectations for 2014 to 2.4%, up from 1.9%.”

“Given the IMF only revised its forecasts three months ago, before which it expected the economy to expand by 1.5%, highlights how behind the curve they are as many other economists had already priced in these sorts of growth levels months ago. Whichever way you look at it, the UK is expected to do much better than Germany, Italy, Spain and France, with the Eurozone expected to grow at 0.9% this year and is fast catching up with the levels of growth expected in the US for 2014 which stands at 2.8%.”
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