Bank of America cite:
- fading of excessively negative views on the UK economy
- UK remains a largely underinvested/undervalued sector in the asset allocation space
- the currency remains fundamentally undervalued
- the political backdrop is more favourable
- there is a more positive outlook for UK-EU relations
GBP/USD fell on Wednesday in line with a surging USD pretty much everywhere.
Faster cuts from the Fed than BoE could be supportive also.
This article was written by Eamonn Sheridan at www.forexlive.com.
