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Sverre Holbek
Senior FX Analyst
Danske Bank
We believe there is potential for the Bank of England to implement more Quantitative Easing. The British are likely to increase the asset purchase target to GBP400 billion. We look forward to cable dropping further over the upcoming months. In the Q1 the cable will be at 1.50, but then later in the year when we will almost certainly see the Bank of England expanding its asset purchasing programme, we anticipate the cable to head towards 1.51 in the next six months and reach 1.52 in twelve months. Our forecast is the following due to the economic growth of the UK which remains weak. To our mind, a rebound similar to the one in the US at the moment is unlikely to occur.