Still Cheap But Not A Buy Yet - Credit Agricole
Credit Agricole CIB FX Strategy Research notes that GBP TWI remains close to the lows dragged down by a combination of investor pessimism about the outlook of the UK economy and lingering uncertainty about the outcome of the ongoing Brexit negotiations.
In that regard, CACIB thinks that while GBP is overall still cheap, it has not become an attractive buy yet given its outlook remains a function of two seemingly conflicting drivers.
"On the one hand, economic fundamentals should continue to make GBP an unattractive long. On the other, already stretched currency undervaluation should limit its downside across the board," CACIB argues.