GBP/USD: the pair will reach 1.40 by the end of the first quarter (ING)

ING remains highly bullish on the EUR/USD and GBP/USD for the first quarter:

"The downtrend on the $/Asia is fortifying demand for euros from Asian central banks. Dollars are recycled in euros. A phase similar to what happened from 2005-2007...

We believe that the GBP/USD will rise to 1.40 in the first quarter when the EU and Britain will have come to an agreement and the BoE will be more hawkish", says ING.