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Strong seasonality to lift the pound in April

Published 04/03/2018, 11:16 AM
© Reuters.  Strong seasonality to lift the pound in April
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EWU
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FKU
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  • April is the strongest month for the pound, with sterling appreciating vs. the dollar every April for the last 13 years according to BofAML.
  • “This remarkable outperformance covers major events such as the financial crisis, general elections and the Brexit referendum," says the bank's Kamal Sharma, "suggest[ing] to us a consistently strong underlying flow which has trumped these idiosyncratic factors.”
  • Mizuho's Neil Jones agrees: “Historically it’s pretty reliable ... I would go with it again this year."
  • ETFs: FXB, EWU, GBB, DBUK, FKU, EWUS, DXPS, HEWU, QGBR, DGBP, FLGB, UGBP
  • Now read: Dollar At A Crossroads On Trade Worries


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