The pound has been pressured by dovish comments from the central bank. Will the BOE cut interest rates?
Here is their view, courtesy of eFXdata:
Bank of America Global Research discusses GBP/USD outlook and maintains a medium-term positive outlook, while stays sidelined in the near-term.
“Although we closed our long GBP* and long NOK trades, we remain positive on both. The short-term GBP outlook is uncertain, given the macro backdrop and potential transition cliff-edge in July, but we remain optimistic that the worst will be avoided once again, as both the EU and the UK have strong incentives to compromise for a trade deal,” BofA notes.
“Time is limited, but a broad agreement by the end of the year or after a small extension, with many details to be finalized later, should be feasible in our view,” BofA adds.
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