Deutsche Bank said on Wednesday that it no longer thinks the British pound is attractive in the short-term after a rally that has lifted sterling to around its highest in a year.
Sterling has risen around 22% since crashing to a record low against the dollar of $1.0327 in September last year, including a 4.4% rise in 2023. It last traded just below a one-year high at $1.262.
"Having been bullish on the pound since the start of the year, we no longer think the pound presents attractive risk-reward in the short term," Deutsche strategist Shreyas Gopal said in a note on Wednesday. Deutsche said it was closing out its bet on the pound versus the dollar, saying "a lot of the domestic good news for the UK is now in the price".
It also said Thursday's Bank of England meeting holds the potential for a "dovish surprise". Traders expect the BoE to raise rates by 25 basis points but Deutsche said some dissenters could vote for a rate cut.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Deutsche Bank's U.K. deal may upend London investment-bank pecking orderDeutsche Bank’s £410m acquisition of City broker Numis threatens to upend the pecking order in UK investment banking, as the German lender aggressively...
Read more »
California bank regulator finds its own faults in Silicon Valley Bank's demiseCalifornia's bank regulator said Monday that it was too slow to see the growing risks at Silicon Valley Bank and did not act forcefully enough to get the...
Read more »
Silicon Valley Bank regulators failed to assess collapsed bank’s risks: reportSilicon Valley Bank regulators failed to identify and assess fast-expanding risks and hazards that doomed the tech-oriented financial firm.
Read more »
California Bank Regulator Finds Own Faults in Bank's DemiseCalifornia's bank regulator said that it was too slow to see the growing risks at Silicon Valley Bank and did not act forcefully enough to get the bank to fix its problems.
Read more »
Jenna Ortega's Comments on Re-Writing 'Wednesday' Inspired Writers' Strike SignsThe actor made headlines after saying that she would periodically start “changing lines” while working on Wednesday.
Read more »
Threat of severe weather reaches Colorado by WednesdayAfter a relatively calm start to the week for Colorado weather, severe storms will move in by Wednesday along the urban corridor and eastern plains. COwx
Read more »