GBP: ‘Tick-Tock’: Room To Add To Shorts – BofA Merrill

Bank of America Merrill Lynch Research notes that with Article 50 now set to be triggered next week – 29 March – a look at positioning shows increased concern.

"Both our real money flow and our sentiment survey data suggest there is room to add to shorts as Brexit negotiations start in earnest," BofAML argues.

In that regard, BofAML sees negative GBP risks in the months ahead expecting a very slow start of the negotiations after the UK government activates Article 50 next week.

"We may have to wait until the end of this year, or even early next year, to have a better view on the negotiations and the chances of a transition period," BofA adds.

Source: Bank of America Merrill Lynch Rates and Currencies ResearchOriginal Article