GBP forecasts upped to the highest since Brexit vote – Reuters poll

The latest Reuters poll showed an upbeat outlook for Sterling in the coming months, in the wake of broad USD weakness amid mounting US-China trade war fears.

Key Findings:

The 12-month forecast was up.

The outlook was for cable to be at $1.44 this time next year.

The main reason behind the move is more related to the outlook for the U.S. dollar ... whose path of least resistance remains down and is under even more pressure over a growing U.S.-China trade spat.

In one month, Cable is forecast at $1.40 and in six months at $1.42.

All stronger than predicted in March.

Seven contributors had forecasts of $1.50 or higher, the most since before the referendum.

Roberto Mialich, currency strategist at UniCredit, "On the one hand, the Brexit negotiations should see some breakthrough ... and on the other hand, it will depend on what the Bank of England will do in the coming months. We have a positive view on cable."