Nomura: Buy GBP/CHF ahead of BoE IR
Unlike the vast majority of strategists, analysts at Nomura recommend buying the sterling ahead of the BoE inflation report (10:30 GMT).
In their view, the sterling has substantial room to appreciate vs. the Swiss franc: "We recommend buying GBP/CHF into the inflation report on Wednesday. We believe the GBP/CHF offers attractive levels especially after the negative Swiss news over the weekend."
"The BoE is expected to evolve its 7.0% unemployment threshold guidance, which could be seen as a short term rates negative (as it would imply rates on hold for longer). But this shift is widely expected and we do not expect the GBP to depreciate, even if the BoE adjust its forward guidance."
Chart. Daily GBP/CHF