Brexit: buy sterling opportunities on the way - Nomura

Analysts at Nomura noted further GBP pain, ECB taper rumours and yen weakness.

Key Quotes:

"GBP has come into the spotlight once again this week, with Prime Minister Theresa May announcing that she plans to trigger Article 50 by “no later than the end of March next year”, sending GBP over 2.5% lower against the dollar.

Once the market adjusts to the “Hard Brexit” realisation at some point there will be an opportunity to be long GBP, but for now near-term GBP momentum is weak for good reason as investor confidence is weak with the currency lower - Gilt yields higher is a good example of this.

We expect this fall to continue down to 1.25 in GBP/USD and up to 0.90 in EUR/GBP in the near term and will readdress the situation there."