The British pound has lost close to 3 percent in the month of May. What is the bias for the currency in the near-term?
Here is their view, courtesy of eFXdata:
Citi maintains a tactical bearish bias on GBP in the near-term.
“Our base case is for rates to be stuck, but BoE is likely to keep the negative rate option more open than elsewhere should marginally weigh on GBP,” Citi notes.
“Amid this we remain bearish GBP on the above and on these factors: markets underappreciate risks on Brexit (especially into the June 30 extension deadline), UK’s foreign funding needs, lockdown measures and services exposure. CitiFX Flows momentum signal suggest GBP lower as well,” Citi adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.
Share
