The Brussels Bombings certainly weigh on the pound on heightened Brexit risks. What’s next for the pound? Here is the view from Credit Agricole: Here is their view, courtesy of eFXnews: Intensifying Brexit fears have been keeping the GBP under selling pressure so far this year. Lingering Brexit fears and weakening data of late have added to the headwinds for GBP. We expect the UK to remain part of the EU after the June referendum and think that the latest GBP underperformance will be temporary. Indeed, we expect the GBP to embark on a gradual appreciation trend in H2 2016 and in 2017. Abating Brexit concerns, the unwinding of excessive market shorts as well as valuation considerations (GBP looks undervalued against USD) could help the currency recover later this year. In addition, rate expectations being somewhat out of line with the UK’s longerterm price outlook supports such a view. In fact, medium-term inflation expectations as measured by 5Y forward breakeven rates remain close to 3%, irrespective of more muted external factors, such as weak commodity price developments, dampening the impact. This may be indicative of constructive domestic conditions, which should ultimately be reflected more in strengthening wage price developments. If so, investors may be quick to re-assess their view of the BoE’s monetary policy stance to the benefit of the currency. *Credit Agricole’s forecasts last updated on eFXplus on 3/17. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next USD looks strong in Brussels bombing aftermath – Live Yohay Elam 7 years The Brussels Bombings certainly weigh on the pound on heightened Brexit risks. What's next for the pound? Here is the view from Credit Agricole: Here is their view, courtesy of eFXnews: Intensifying Brexit fears have been keeping the GBP under selling pressure so far this year. Lingering Brexit fears and weakening data of late have added to the headwinds for GBP. We expect the UK to remain part of the EU after the June referendum and think that the latest GBP underperformance will be temporary. Indeed, we expect the GBP to embark on a gradual appreciation trend in H2 2016… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.