GBP is the second most sensitive G10 currency to trade growth. This may come as a surprise, but the GBP is sensitive to the global business cycle (or should we say liquidity cycle), maybe because of the economy’s reliance on financial services? So, while the GBP strength may most easily be explained by abating Brexit fears, we tend to think that the better negotiation climate between US and China may matter (a lot) for GBP as well. We remain pessimists on both US/Chinese relations and on the chances of Brexit getting resolved with an orderly deal, but those are probably stories for October, not for September. We stay side-lined, but we are tempted to buy the dip in EURGBP. Sterling bulls will hope that the birthday party continues. from Nordea