BTMU on cable
BTMU FX Strategy Research discusses GBP outlook in light of the recent media reports which have suggested that the EU and the British officials have agreed on the settlement of the so called 'divorce bill'.
"News that the EU and the UK have reached an outline deal on the financial settlement is very significant and despite recent increased concerns over the Irish border issue, this is the most important development pointing to a likely deal...
The pound would no doubt be stronger today were it not for that lingering uncertainty over the Irish border but assuming this does not thwart progress our year-end GBP/USD target of 1.3600-1.3700 is clearly achievable.
Furthermore, levels over 1.4000 next year are also achievable based on actual economic growth being stronger than the building consensus of economic weakness in the coming years," BTMI argues.
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