Cable only cloud in Calyon's clear view
While predicting a near-bull's eye on all crosses compared with Monday's spot rates, the investment bank's GBP/USD prediction stands out. The bank forecasted cable to reach 2.05 by last Monday, well above the actual rate of 1.97.
Mitul Kotecha, London-based head of global foreign exchange research at Calyon, said that, when the forecasts were made, the weakness in the GBP looked overdone. This was based on the correlation between GBP crosses and interest rate spreads, where futures spreads
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