JP Morgan Research discusses GBP / USD outlook and likes short exposure in spot around current levels.
“We believe GBP has passed the point of peak vaccine related economic optimism ,.” JPM notes.
“With the vaccination gap now closing, with the US and also with the Euro area, it is understandable that investors are reassessing the merits of holding their GBP longs, especially as the (alleged) safety blanket of very positive April seasonals for GBP morphs into equally negative May seasonals. Cable has declined in May in 13 of the last 15 years (an average decline of 0.99% 6, which rises to -1.76 if we exclude the GFC-distorted surge of 9.6% in May 2009)., “JPM adds.
