Flash: GBP still has room to strengthen - Nomura

FXstreet.com (Bali) - GBP is likely to continue to appreciate slightly in coming months, notes Charles St-Arnaud, FX Strategist at Nomura.

Key Quotes

"We believe that the completion of the Verizon-Vodafone deal at the end of the quarter and further repricing of the timing of the first rate hike will provide further support to GBP."

"Moreover, financial flows remain supportive, especially equity flows, while positioning and valuation suggest that GBP still has some room to appreciate."

"However, we believe that the increase against USD will likely be modest and would rather suggest being long GBP against JPY, CHF, SEK, CAD and AUD."