Here yet another report from the professionals on the UK with some accompanying FX forecasts.
Summary Nordea:
- In spring the recovery was seen as the slowest in 100 years. Now, PMIs are the highest on record.
- In spring Governor Carney was the dove above doves. Now, he sees no need for more QE and is not afraid to hike rates at some point.
- The GBP has strengthening significantly as a consequence, but the most recent move higher in GBP/USD seems overdone.
- We maintain our longer-term GBP views: stronger vs the EUR and weaker vs the USD.
Here the report:
Rich