GBP/USD has closed the week on higher ground on high hopes. These hopes relate to the Brexit negotiations that should hopefully reach some results by the EU Summit in mid-November. Here are two opinions, by BTMU and Credit Agricole:
Here is their view, courtesy of eFXnews:
GBP/USD: Options Flows Points To A Scope For GBP Buying Ahead Of Dec Summit – BTMU
BTMU FX Strategy Research discusses GBP outlook ahead of the December 14-15 EU Summit.
“We see increased upside risks for the pound with clear signs of progress being made toward a financial settlement that prompts a formal shift to transition and trade talks beginning in January
Option flows show greater GBP put demand through most of this week while leveraged speculative futures positioning is certainly not at am extreme which suggest to us scope for speculative GBP buying if we continue to see progress toward a deal being reached and confirmation on a shift in talks to transition in December.
Market participants are understandably wary at this point but risks are increasing of a sudden lurch higher on these signs of progress,†BTMU argues.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.
GBP/USD: Many Negatives In The Price; What’s Next? – Credit Agricole
Credit Agricole CIB FX Strategy Research discusses GBP outlook ahead of the coming week.
“Ahead next week it will be quiet in terms of market moving data releases. At the same time there is low surprise potential in the autumn statement to parliament. We expect sentiment to be predominantly driven by Brexit.
…We believe that many negatives are in the price of GBP by now. This is especially true as officials have been stressing the risk of no agreement being reached already.
From a broader angle we expect the GBP to continue trading within the last few months’ trading range. This is especially true as balanced speculative GBP positioning keeps the risk of further position squaring related downside low,†CACIB argues.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.
