Pound making a come back on EU concerns - BTMU

Analysts at Bank of Tokyo Mitsubishi explained that the market’s increased focus on political risk in the euro-zone following the election of President Trump has helped the pound to outperform alongside the US dollar.

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"Brexit concerns are no longer dominating the performance of the pound. It has helped to balance risks for the pound as evident by the six-month EUR/GBP risk reversal which signals that the demand for puts is now marginally higher than for calls for the first time this year. We see scope for the pound to strengthen further continuing to defy bearish expectations."