Pound Positions May Pick Up This Week on Brexit ‘Positive Vibes’

After a quiet start to January, this week could see bigger bets come back into play on the pound.

 With the U.K. Parliament returning from recess and a slew of data, investors will be looking to put on fresh sterling positions, according to Neil Jones, head of currency sales at Mizuho Bank Ltd. Despite lingering Brexit uncertainty and a mixed economic picture, banks including Nomura International Plc and ING Groep NV have bullish calls on cable. A breakthrough in Brexit talks in December helped the pound to end 2017 up almost 10 percent versus the greenback, and the consensus in a Bloomberg survey sees the dollar index continuing to weaken in 2018. Still, as the market faces a crucial 10 months of Brexit talks before an October target to reach a trade agreement with the EU, domestic factors will also be key.