Sell GBP/CNH as BoE turns less hawkish - ANZ

Analysts at ANZ think the recent strength in GBP/CNH is running out of momentum and therefore are recommending selling 3m GBP/CNH forward for the target of 8.65.

Key Quotes

“In yesterday’s meeting, the Bank of England (BoE) stepped back from its more hawkish tone in June. Meanwhile, we expect the CNH to be broadly stable, on moderately improving fundamentals and ahead of the 19th National Congress to be held in the autumn.”

“We recommend selling 3m GBP/CNH forward, at 8.91 (spot reference 8.84), targeting 8.65 with stop at 9.05. This trade has a positive carry and removes the USD element.”