A couple of snippet on GBP.
Nomura say cable could head to 1.30 in 2023 and potentially higher than that.
The risks to it are:
- uncertainty around the path ahead for the Bank of England
- how rate rises will work back through the UK economy
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And, Deutsche Bank:
- With the market going into the year too short pounds amid overly gloomy expectations, the absence of negative news and robust data have been enough to push Cable to around our initial target from the January Blueprint of 1.25.
- Some of the domestic good news may now be in the price, but ... we still recommend being long GBP (against both USD and SEK)
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Weekly cable, room to 1.30?