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23 Sep 2014
Bullish GBP vs EUR, SEK, CHF - Nomura
FXStreet (Bali) - Nomura FX Strategists recommend entering into GBP long against equal weighted basket of EUR, SEK, CHF.
Key Quotes
"We have been neutral on GBP since we took profits on EURGBP short positions in the EUR short basket on 25 August."
"The uncertainty in the run-up to the Scottish Referendum led GBP vol to spike higher, but after the “No” vote last week vols are lower and we expect GBP to trade back in line with changes in its fundamentals."
"We expect GBP to outperform among European G10 currencies, on the back of monetary policy divergences and different inflation momentum. Thus, we recommend buying GBP against an equal weighted basket of three European G10 currencies: EUR, CHF, and SEK."
Key Quotes
"We have been neutral on GBP since we took profits on EURGBP short positions in the EUR short basket on 25 August."
"The uncertainty in the run-up to the Scottish Referendum led GBP vol to spike higher, but after the “No” vote last week vols are lower and we expect GBP to trade back in line with changes in its fundamentals."
"We expect GBP to outperform among European G10 currencies, on the back of monetary policy divergences and different inflation momentum. Thus, we recommend buying GBP against an equal weighted basket of three European G10 currencies: EUR, CHF, and SEK."