Credit Suisse FX Strategy Research discusses GBP outlook, expecting modest sterling upside into year-end towards 1.3640.
"With the market’s pricing of two further BoE hikes over the next three years now assessed by the Bank as “fair”, further repricing (in either direction) is likely to be highly dependent on future Brexit negotiations as well as on how the UK’s economic data evolves.
On the former, we maintain our view that a transition period and some measure of stability will be secured, despite the risks around short-term headlines. .
In our view, the sum of recent developments suggests little reason to change our modestly bullish outlook on the GBP," CS argues.
Source: Credit Suisse Global Fixed Income ResearchOriginal Article
