GBP outperformed the US dollar this week – BBH

Research Team at BBH, suggests that among the major currencies, there has been only one that has outperformed the US dollar this week, and it is the British pound.  

Key Quotes

“It recouped the losses from earlier in the week yesterday and is extending those gains today.  At $1.2660, it has risen 1.1% on the week and has surpassed the flash crash high (~$1.2625) for the first time.  It has also met the 50% retracement objective of the last notable high from September 6 (~$1.3440).  The next retracement is seen near $1.2830.”

“Sterling's gains are partly a function of unwinding short positions, especially against the euro. The euro's decline against sterling this week (~3.6% at GBP0.8575) is the most since early 2009.  It is the second consecutive weekly decline and is only the third such decline since early September.   The driving force is not so much a reassessment of the UK as much as the recognition that EMU is particularly vulnerable to the rise of nationalism.”