EFTA Document EFTA01451186

9 January 2014 FX Blueprint: Thin end of the wedge Theme 1t3: - Home Counties trump Mounties ▪ Inflation risks and potential FDI inflows should keep sterling supported this year, but a widening current account deficit and stronger USD will constrain gains versus the euro and dollar. We are moderately bearish EUR/GBP and GBP/USD. forecasting 80p and 1.54 by end-year respectively. • As an outright trade we prefer buying GBP versus CAD, on which we are more bearish. It remains vuln