A client note late last week via Société Générale on their outlook for sterling.
- Bank of England gave a strong indication of negative rates coming early 2021, if combined with a no trade deal Brexit could prompt drop for GBP
- GBP is already weaker than relative growth might suggest, or than relative rates might warrant
- GBP continues to lack any kind of catalyst for a significant bounce
- GBP/USD likely to fall 1.25 in Q1 2021
- EUR/GBP to 0.96 in Q1 2021, to 0.94 in 12 months
SG say they favour shorting GBP/JPY