Credit Agricole on what's next for the pound
Credit Agricole CIB FX Strategy Research recommends buying any GBP dip post-BoE for the following reasons.
Firstly, the BoE stance could continue to support the market expectations about a potential BoE hike.
Secondly, expectations that PM May would soften her stance on Brexit could grow ahead of the Tori party conference in October.
Thirdly, GBP continues to look undervalued against EUR and especially vs. USD according to our long-term valuation model G10 VALFeX," CACIB argues.
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