The document discusses the outlook for the British pound (GBP) against the US dollar (USD) and Swedish krona (SEK), highlighting the end of the sterling uptrend due to stretched valuation, unsustainable capital inflows, and political risks. It suggests staying short on GBP/USD and GBP/SEK due to diverging monetary policies between the US and UK. The document also analyzes the expensive valuation of the pound, record capital inflows, and potential challenges from fiscal and monetary tightening in the UK.
documents/vol00010-efta01459597-pdf.pdf
{"title":"FX Blueprint: Forever Young","document_date":"2016-01-12","document_type":"correspondence","key_locations":["UK","US"],"key_organizations":["Deutsche Bank","Bloomberg Finance LP"]}