Deutsche Bank: sell GBP/USD this week
Deutsche Bank recommends selling GBP/USD this week.
"The domestic growth cycle is now probably in the price, with expectations for 2014 growth forecasts revised up substantially and the market now pricing three BoE hikes by July next year". At the same time, analysts see the risks that Q2 GDP may surprise to the downside after this week’s soft manufacturing and construction output numbers.
"Market positioning remains stretched (see chart)," analysts point.