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GBP: Victim Of Its Own Success; Themes, Forecasts, Risks - BofA Merrill
The following is Bank of America Merrill Lynch's comprehensive outlook for the GBP including its current themes, forecasts, and risks. Themes: focus turns to November QIR. The month of October has not been kind to GBP bulls. Sterling lost ground to virtually every single G10 currency through the month and has lost nearly 1% in TWI terms. Weak UK data, dovish MPC rhetoric and the position squeeze in the UK rate markets have all been factors which have undermined sentiment. The positioning constraints which were a warning sign for GBP longs have now all but abated and the focus now turns to the November Quarterly ... (full story)