Nordea Research likes short EUR/GBP exposure around current levels targeting a move towards 0.8345.
"GBP optimism continues due to a successful vaccine roll-out as 1) The UK emergency approved vaccines early, 2) had a much more clever wording of contracts with suppliers than EU and 3) Is the only country to decide on a de facto 1-jab (or a slow 2-jab) regime of the vaccine, which has proven to be the best approach by now," Nordea notes.
"All in all, flows have started to return to the UK. We bet they will keep doing so. It may sound like we are late to the party, but we add short EUR/GBP with a target of 0.8345 (and S/L at 0.8812) to our tactical portfolio," Nordea adds.