A snippet from a Nomura piece overnight on the sterling.
Paints a background picture of GBP as part of 'risk markets' that will underperform as US - China trade tensions accelerate.
(So far so good on that one.)
Nomura expect GBP to trade less on its own merits and more in conjunction with 'risk'
- Unwound EUR/GBP longs can look to enter when volatility in risk diminishes, 'risk off' reviving volatility
- the bank link GBP in to CNH behaviour - current weakness similar to the bout in 2018 which saw a weaker GBP (lower expectations for BoE)
