GBP/USD to gradually appreciate but mind the May 6 Scottish elections - ANZ
GBP/USD up 7 pips to 1.3943 today
ANZ Research discusses GBP/USD outlook and maintains a bullish bias through year-end. ANZ targets GBP/USD at 1.46 by year-end and at 1.50 into mid-22.
"Supported by growing evidence that the easing of pandemic restrictions is underpinning UK growth, GBP/USD has regained its uptrend," ANZ notes.
"Against the backdrop of higher US inflation and the UK's unfolding recovery, we expect that GBP/USD to keep appreciating gradually. However, against the euro, sterling's outperformance has moderated. That owes to the improved EU vaccination program and legacy Brexit concerns.
If the Scottish Nationalist Party wins an overall majority in the 6 May Scottish elections, pressure for a referendum on independence will intensify, which could cause some GBP underperformance on the crosses," ANZ adds.For bank trade ideas, check out eFX Plus.