What is the outlook for GBP in the near and medium-term?
Here is their view, courtesy of eFXdata:
Bank of America Global Research discusses GBP outlook in the near- and medium-term.
“While positive April seasonality should be supportive against the backdrop of UK dividend payments and where we retain a short-dated long GBP/USD position via ratio call spreads, further GBP gains are going to be harder to achieve,” BofA notes.
“In broad terms, a pro-cyclical, risk-on environment should be GBP supportive as it will for other high beta currencies. What will see GBP standout is whether the UK can continue to attract investment inflows, which have been a hallmark of the recent appreciation,” BofA adds.
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