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Strategy Report

Budget Deficits And Currencies: The UK As A Case Study

by Chester Ntonifor, Chief Strategist  

In this report, we assess that sterling likely bottomed below 1.04. We expect volatility in the currency to remain in place but are buyers below current levels. On balance, there is a tug of war between irresponsible fiscal policy and the pound as a global reserve currency. This will create a buy-in opportunity for investors who missed the latest dip.

BCA Research | Foreign Exchange Strategy

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