GBP: we see downside risk emerging into February but higher short-term yields support for now
Summary and changes vs. December
1. GBP: we see downside risk emerging into February but higher short-term yields support for now
2. USD: strength of Q4-10 GDP unlikely to be sustained in Q1 and so soft US yields/public deficit may stall dollar’s progress. Safe haven if Asian equity sell-off spreads
3. EUR: EU sovereign credit position still overshadows ECB inflation rhetoric
4. AUD: inflation spike may not persuade RBA; watch risk assets and China policy
5. Scandis: underpinned by fiscal balances and rising rate profile
