What's the state of play in sterling?
MUFG Research adopts a cautious bias on GBP in the near-term.
"Over the last two weeks the GBP has been the best performing G10 currency. Unless there is a broader deterioration in overall investor risk sentiment, the GBP appears well placed to extend its advance in the near-term.
"If cable is able to break above the 1.3200 where the highs from earlier this year are located, it will open the door to a potential test of the December 2019 high at close to the 1.3500,"MUFG notes.
We would become more confident in further near-term GBP gains if EUR/GBP was able to break more decisively back below the 0.9000-level," MUFG adds.
