- Current level of sterling is fine if it stays where it is (right, no trading the pound for the rest of the year folks)
- Central bank intervention is historically not effective
- Sterling only at top of post crisis TWI range
- AQR review may lift confidence in EU banks
Adding 2 & 2 together and coming up with any number you choose, he seems happy with the current range of the pound but I would think that a big move above 1.70 would start to put real pressure on the economy. It’s historically been a level where things start to suffer. Of course there are many other factors to weigh up than just the price. You need demand before you worry about the prices.
