G10 exchange rate forecasts from Nomura

Nomura have released their latest G10 exchange rate forecasts.

Highlights of the forecasts are a British pound that outperforms the euro. EUR/GBP is predicted to reach 0.75 by the end of next year. This is a GBP/EUR rate of 1.33.

With regards to the GBP/USD forecast, the rate is seen at 1.60 at the end of 2014.

"We recently took profit on our long GBP/SEK and entered a 3M EURGBP 0.83/0.81 put spread.
We are long GBP via CHF and short JPY via USD, EUR, and GBP. We are also long EUR/CHF. We also remain short CAD via a basket," say Nomura in reference to their strategy.

Concerning the euro, Nomura reckon the shared currency's uptrend is now looking tired:

"We think the Euro uptrend, which has been in place since April, with few interruptions, is starting to look tired. There are several cracks appearing in the Euro's otherwise resilient surface. Beyond the price action, which obviously could be a false signal."

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