• GBP has testified of its high beta properties after its rapid recovery in August alongside other risky assets
  • Expected downside in EURGBP below 0.85 and upside in GBPUSD above 1.30 to extend
  • Maintains long recommendation in GBPCHF
  • Main drivers of the bullish view is positive global risk sentiment, lower yields, and improving UK domestic data (demonstrated by recent flash PMI data)
  • Sterling to be supported as solid activity data should help the BoE stay in line with their peers
  • Incoming fiscal policy with the budget statement is a potential risk