The British Pound moved higher on hopes for a Brexit deal but never went too far. What’s next?
Here is their view, courtesy of eFXdata:
ANZ Research discusses GBP outlook and thinks that dips are likely to be an attractive buying opportunity in the medium-term.
“We expect the BoE to sit on the sidelines for now, given the elevated policy uncertainty, but this shouldn’t come as a surprise to markets. Recent price action suggests a lot of bad news has been priced in, and sensitivity to positive headlines seems to be greater.
As such, anything below 1.28 for GBP/USD (or above 0.90 for EUR/GBP) should be seen as an opportunity to buy GBP, barring a material deterioration in EU-UK talks,” ANZ argues.
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