GBP/USD: Remains Positive M/Term But S/Term Outlook Is Uncertain – BofA

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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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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 the 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.

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