“Though we have seen some progress inside Brexit negotiations, GBP still probably remains a currency of which some investors have stayed underweight along with could surprise as an outperformer,” Tuchman, through Citi, told CNBC.
At the same time, the Bank of England, which raised rates for initially in more than a decade in November, will be set to gradually tighten its policy, which could support the currency further. Markets have priced a rate hike next year, although some analysts believe there could be two hikes.
“As we enter 2018, there will be less of a consensus view on the USD, although most people believe of which broad USD weakness can persist,” Tuchman said. “The political risks in Europe along with the U.K. seem much reduced, the BOE has raised rates already once along with while policy rates remain accommodative inside Eurozone along with in Japan, more talk these days will be about when the European Central Bank along with the Bank of Japan will ultimately end their quantitative easing programs along with in Europe’s case, raise rates.”
Disclosure: NBCUniversal, parent of CNBC, will be a minority investor in Kensho.