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Bank of America sees short-term scope for sterling gains as the risk premium declines after the UK/EU trade deal. It nonetheless forecasts GBP/USD at 1.33 and EUR/GBP at 0.94 by the end of 2021, implying a weaker pound over the medium term.
BoA said sustained sterling gains require a pickup in UK yields.
A medium-term sterling decline would have only a marginal effect on dollar-priced feed commodities. The forecast carries no direct agricultural price signal.
exchangerates.org.ukTim ClaytonJan 19, 2021Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
