Nomura sees case for GBP long positions

Analysts at Nomura have noted that the latest Bank of England (BoE) move on rates is a GBP-positive move, and are calling for GBP long positions, favouring an exposure to shorting the EUR/GBP pair.

Key highlights

Following this week's rate hike, Nomura expects another rate increase in February 2019.

Analysts note that the BoE is showing very little concern over recent misses for inflation, as well as disregarding ongoing global trade tensions.

Nomura is focusing on EUR/GBP short positions in favour of outright GBP/USD long positions, especially after the Sterling softened following the BoE decision.