In light of recently called elections in the UK, and after perusing economic forecasts, Deutsche Bank has closed its long-standing bearish bet on the pound sterling, taking out “crash risk” and turning neutral on the British currency. Part of this turnaround is based on the conservative party winning upcoming elections and part of the trade logic is based on economic valuations of the currency’s value relative to the economies in the European Union and the United States, with dollar strength a continued issue and a soft brexit the outcome. Conservatives are expected to win in UK, and this will…
Deutsche Bank Ends Long Standing Bearish Stance On UK Pound Sterling
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.