By eFXdata — Aug 15 - 01:30 PM
Societe Generale Research sees a scope for short GBP/USD to outperform through the second half of August.
"Are markets complacent about Europe’s energy crisis? The response [we] get is that German storage tanks are filling up and maybe the worst case is now priced in. Maybe. The way to ignore the question is to sell sterling instead of the euro. Even if sterling sentiment is universally bearish, a leadership vacuum as inflation rises and growth slows, is a scary combination," SocGen notes.
"Short GBP/USD for the second half of August? CPI, employment, and retail sales data are all out this week, so sterling volatility seems likely, at the very least," SocGen adds.
Société Générale Research/Market Commentary