A big bulk of issues worries the world, not only Brexit. What’s next?
Here is their view, courtesy of eFXdata:
Societe Generale Research discusses GBP outlook in light of the latest Brexit development.
“UK PM Theresa May survived the vote of no-confidence in her leadership of the Conservative Party. That does nothing to deliver a Brexit deal that is acceptable to Parliament and the rest of the EU, however. The ‘meaningful vote’ on her deal has to happen by January 21 and she probably isn’t in a hurry to hold it earlier. Nor will the EU be in a hurry to agree on concessions in part because if they do so, the UK will come back and demand more,” SocGen notes.
“There isn’t much to help sterling, therefore. GBP/USD will follow EUR/USD and 0.89-0.91 will probably capture the bulk of EUR/GBP trading for the rest of 2018,” SocGen argues.
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