Strategists at Deutsche Bank have reiterate their bearish stance on the Pound in 2018 citing U.K. stocks and government bonds as now being too expensive which could hamper inflows of foreign investor capital.
Early on Friday morning, Theresa May finally managed to broker an agreement with the Irish government, the DUP and the EU to take the UK onto the next phase of Brexit negotiations, Deutsche Bank assesses the impact on the Pound.
Strategists at Deutsche Bank entered the first week of October looking to bet on rebound in the Pound that could take it back to a target set at 1.17. Thus far, not all has gone to plan.
It's back to Brexit for Pound Sterling which will be seeking a new driver now that a more hawkish Bank of England has been priced into the currency's value.
The Pound's rally could continue in the near-term as short-positioning is flushed out of the market and a November interest rate rise is fully priced argue analysts at Deutsche Bank.
Deutsche Bank, while not optimistic on Sterling’s broader prospects against the Euro for the remainder of this year, have warned of a near-term bounce in GBP/EUR.
“We are more positive on the euro, with upside to the dollar and sterling” - Deutsche Bank’s house view.
The Euro is showing that it is going to go higher, regardless of what policy-makers at the European Central Bank do.
Now could be a good time to bet on a more sustained decline in Pound Sterling we are told.
It’s too early to anticipate a sustainable recovery in the Pound based on the view the UK might be heading towards a so-called soft-Brexit argue analysts at Deutsche Bank.
Foreign exchange strategists with Deutsche Bank have told clients it could be time to start betting against the Pound again with the outcome of the upcoming General Election likely to prove disappointing for Sterling.
A mere matter of hours after Pound Sterling Live were able to report that Credit Agricole were looking to profit on an expected rise in EUR/GBP we can now confirm that Deutsche Bank have come to a similar conclusion.
The Pound to Euro exchange rate is no longer likely to fall to parity as the recent shifts in the UK’s political landscape represent a positive outcome for Sterling.
Foreign exchange strategists at Deutsche Bank have conceded they might have previously been a little to negative on the Euro’s prospects against the US Dollar.
Research from Deutsche Bank places Pound Sterling as one of the world’s most undervalued currencies as we head into 2017.
A re-run of the 1.20 peg debacle, could see the EUR/CHF pair break below 1.08 and drop to parity argue Deutsche.
Deutsche Hold onto their EUR/USD shorts as they see the Euro vulnerable to political risk and the Dollar strengthening despite yield upside now looking capped.
Westpack bank's currency portfolio allocation model has cut its exposure to the Australian dollar and replaced it with increased exposure to the US dollar – but gains may be short-lived says strategist Richard Franulovich.
Deutsche Bank reiterate their forecasts for a notably lower Pound Sterling against the Euro and Dollar.
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