Markets are accused of being too pessimistic on Sterling by analysts at SEB who say they believe the British Pound presents itself as a strategic buy against the Euro.

Analysts believe Sterling will ultimately win the Pound vs. Euro tennis match, but patience is required.

2018 should see Brexit talks between the U.K. and E.U. steadily progress,  and this will lead to a strong upswing in the Pound-to-Euro exchange rate.

“Given a more negative view of Brexit talks, an increased risk premium on the GBP is reasonable" - say S.E.B. justifying decision to reverse forecast upgrade made in September.

The EUR/USD has probably peaked at 1.20 according to Scandinavian lender SEB, who struggle to see on what basis the pair could go higher, in the short-term at least.