BoA: GBP/USD risks correcting lower
Analysts at Bank of America Merrill Lynch say that the Bank of England’s meeting (12:00 GMT) will be a non-event for sterling. In their view, GBP/USD is elevated at current levels and at risk of a correction lower.
“We recommend positioning for a sell-off in GBP/USD, now that the GBP supportive M&A order flow (from the Vodafone-Verizon deal) has passed through the market,” says the bank. The strategists also say that their positioning indicators show that equity and bond investors have a very overweight sterling exposure.