GBP/USD has closed the week on higher ground on high hopes. These hopes relate to the Brexit negotiations that should hopefully reach some results by the EU Summit in mid-November. Here are two opinions, by BTMU and Credit Agricole:
Here is their view, courtesy of eFXnews:
GBP/USD: Options Flows Points To A Scope For GBP Buying Ahead Of Dec Summit – BTMU
BTMU FX Strategy Research discusses GBP outlook ahead of the December 14-15 EU Summit.
“We see increased upside risks for the pound with clear signs of progress being made toward a financial settlement that prompts a formal shift to transition and trade talks beginning in January
Option flows show greater GBP put demand through most of this week while leveraged speculative futures positioning is certainly not at am extreme which suggest to us scope for speculative GBP buying if we continue to see progress toward a deal being reached and confirmation on a shift in talks to transition in December.
Market participants are understandably wary at this point but risks are increasing of a sudden lurch higher on these signs of progress,” BTMU argues.
