TD Research discusses GBP outlook and notes that its high-frequency fair-value model (HFFV) points to a move towards 1.35. TD is also looking to fade USD/JPY rallies near 115.
"For now, political headlines are top of mind. The Brexit newsflow is heading in the right direction while GBPUSD HFFV points to 1.35.
That could reinforce topside in GBPCHF while EURUSD holds key levels at the bottom end of the range. JPY looks the most disconnected from cyclical drivers, highlighting downside in CHFJPY.
We also now like fading the rallies and in USDJPY near 1115," TD argues.