GBP/USD: BNP expects the GBP to rise against most G10 currencies in 2017

The BNP bank expects 2017 to be a good one for the GBP:

"We expect the GBP to outperform most G10 currencies in 2017, while remaining relatively stable against the US dollar. The British economy will face significant challenges in 2017 as it adjusts to the uncertainty of Brexit. However, we believe that the current GBP level has already included the worst-case scenario in terms of UK capital outflows.

On the other hand, the market has already responded to the government's rhetoric, and is focusing less on immigration control, and more on measures to obtain the best possible access to the single market. The GBP is very cheap compared to its long-term value," says the BNP.