Bank of America strategists have softened their “bullish view beyond consensus” on the pound and expect the pound's recent gains to fall as political uncertainty continues to rise. The strategist, headed by Kamal Sharma, said in the report that after the “sharp and rapid rise” of the pound this month, their views on the pound have become short-term neutral. With a new government in place, the market will seek a new balance. “For this reason, and because EUR/GBP fell below 0.85, we have a neutral attitude towards the pound,” Sharma wrote. “Although it is a summer market, the news is likely to continue in the coming weeks”.

Bank of America strategists have softened their “bullish view beyond consensus” on the pound and expect the pound's recent gains to fall as political uncertainty continues to rise. The strategist, headed by Kamal Sharma, said in the report that after the “sharp and rapid rise” of the pound this month, their views on the pound have become short-term neutral. With a new government in place, the market will seek a new balance. “For this reason, and because EUR/GBP fell below 0.85, we have a neutral attitude towards the pound,” Sharma wrote. “Although it is a summer market, the news is likely to continue in the coming weeks”.