HSBC Sees Sterling Rally Over, Cautious Ahead

Dominic Bunning, head of European FX research at HSBC, said his team was not looking to fight sterling’s strength at the moment, but they were cautious that the main phase of sterling’s move higher may be over;
HSBC believes that the pound‘s momentum may start to weaken in the fourth quarter, which leaves room for further strength in the summer;
Bunning said: “We are by no means turning negative on the pound. But in the absence of a clear improvement in the domestic situation, we would be cautious about stronger gains in the pound.”