The pound has been cautiously moving up, recovering around 200 pips from the lows. What’s next?
Here is their view, courtesy of eFXdata:
Societe Generale Cross Asset Strategy Research discusses GBP outlook and adopts a cautious stance around current levels.
“…going to struggle to like GBP in this climate but the bounce after a half-decent PMI sums up the underlying market bias.
A PMI that suggests Q2 PMI could bounce by 0.4% after a 0.1% Q1 gain doesn’t point to growth much over 1% but it makes nice ‘bounce’ headlines and sterling has duly reacted, because it is cheap down here, even if it’s cheap for very, very good reason,†SocGen argues.
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