Two spots to buy cable
From Credit Agricole:
The GBP has been well supported of late too, still on the back of somewhat lower expectations of the UK exiting the European Union. According to an exclusive poll for The Telegraph, the "Remain" camp now has a 13 point lead. In an environment of a falling probability regarding a Brexit, investors' focus should increasingly shift their focus back to growth prospects as a main driver of the currency.
BoE members, including Governor Carney, stressed yesterday that Brexit-related uncertainty was partly behind the recent growth slowdown and that the avoidance of it may cause a rebound. This in turn suggests that there is room of rising rate expectations to the benefit of the currency.
Considering it remains our main case that the UK will stay part of the EU, we believe that GBP dips may still prove an attractive buy, in particular against currencies such as the CHF or the NOK.
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