The British pound has been exhibiting sterling performance. Here's one strategist's plan for its next move.
Between M&A activity, demand for Britain's triple-A bonds, and rising stock prices, the British pound has faced nothing but sunny skies lately.
"M&A right now is big because companies have a ton of cash on their balance sheets," says Rebecca Patterson, chief markets strategist for J.P. Morgan Asset Management, Institutional. And that alone creates a tactical currency-trading opportunity, she says. "If you see a deal going across the wire and you hear that it's cash, you want to be buying the currency of the target company."