GBP gains are nearly over – Reuters poll

According to the results of the poll conducted by Reuters of more than 60 foreign exchange specialists last week, a majority of the respondents believe that Cable is expected to maintain its trading range this coming year.

Key Findings:

GBP/USD to trade at:

• $1.40 in a month.
• $1.39 in six months.
• and back at $1.40 in a year.

Against the Euro, the GBP forecasts remain unchanged from January while the Euro will be worth 88.0 pence in one month and 89.0p in six months and a year.

Analysts at Credit Agricole noted: "The pound has been well-supported this year, largely on the back of stable monetary policy expectations. Looking ahead, we believe the risk of deteriorating fundamentals will remain, while Brexit-related uncertainty might rise again."

Goldman Sachs’ Analysts said: "Investors should expect a bumpy path toward an eventual Brexit transition deal between the UK and its EU partners."