Pound looking quite cheap - Scotiabank

Analysts at Scotiabank explained that their GBP forecast has been upgraded to reflect their call for the BoE to tighten monetary policy later this year in response to high domestic inflation. 

Key Quotes:

"We expect only a slow tightening in policy, however, with a second hike unlikely before mid-2018—we think May. But considering that few major central banks are even close to raising benchmark rates, even a slight increase in the benchmark rate will help lift the GBP broadly. B

Brexit remains a risk in the GBP’s background but, assuming no significant changes on the domestic political front, we also think a lot of bad news has already been factored into the GBP at current levels and we rather view the GBP as looking quite cheap still from a longer-term valuation perspective."