Sterling not a sell around current levels - Credit Agricole

GBP/USD strategy

Credit Agricole CIB FX Strategy Research discusses GBP outlook and continues to advise against selling the currency around current levels.

"This is largely due to ongoing political uncertainty and as central bank monetary policy expectations should remain stable. In relation to Brexit negotiations, we expect officials to form an agreement in relation to the divorce bill and citizens' rights, in order to lay the ground for further discussions with respect to a transition period as part of the December EU summit. An agreement must be reached by the first week of December," CACIB argues.

In terms of this week's data releases, CACIB points to November manufacturing PMI on Friday, which should continue to indicate constructive business activity.

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