Pessimistic on sterling to 1.2000 - Scotiabank

Analysts at Scotiabank are pessimistic on sterling.

Key Quotes:

"European currencies are still dealing with the aftermath of the UK’s Brexit referendum decision last June. 

The UK government is expected to invoke Article 50, which will formally launch exit proceedings, by the end of March. 

The UK economy held up remarkably well in H2 2016, prompting the Bank of England to adopt a neutral policy bias. 

We continue to feel that the pound (GBP) is vulnerable to growth disappointment and uncertainty surrounding the EU exit process, however, and forecast GBPUSD reaching 1.20 in the next few months."