The Pound is Enjoying a Fresh Wave of Confidence From Investors
- Aberdeen, SEB see sterling at 80 pence to the euro in 2018
- Pound risk reversals reach most bullish level in two months
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Even as Brexit talks lurch from one hurdle to another, the pound is enjoying a rising wave of confidence among investors and analysts.
Aberdeen Standard Investments recently added to sterling long positions, betting it will rally in 2018 as Britain and the European Union make better progress in their negotiations than the market expects. The currency will also benefit from the prospect of interest-rate increases by the Bank of England, according to the U.K. firm and JPMorgan Asset Management. Strategists at SEB AB recommend buying the pound while those at Nomura International Plc see room for gains next year.