GBP: Bounces On A ‘Half-Decent’ PMI Because Its Cheap But Not A Buy Yet – SocGen

Here is their view, courtesy of eFXdata:

Societe Generale Cross Asset Strategy Research discusses GBP outlook and  adopts a cautious stance around current levels.

“…going to struggle to like GBP in this climate but the bounce after a half-decent PMI sums up the underlying market bias.

A PMI that suggests Q2 PMI could bounce by 0.4% after a 0.1% Q1 gain doesn’t point to growth much over 1% but it makes nice ‘bounce’ headlines and sterling has duly reacted, because it is cheap down here, even if it’s cheap for very, very good reason,” SocGen argues.

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