Although the Pound strengthened in early Europe, it has retreated from intra-day highs with GBP/USD unable to hold 1.3750 while GBP/EUR also dipping to 1.1835 from 19-month overnight highs at 1.1880. MUFG still expects the Pound to Dollar (GBP/USD) exchange rate will struggle to make headway, especially given Federal Reserve tightening; “We are not convinced that recent GBP gains will be sustained against the USD.” In this context, it maintains its short GBP/USD position from 1.3690 with a target of 1.3200. While MUFG expects GBP/USD will fail to make headway, other investment banks expect the Pound to Euro (GBP/EUR) ... (full story)