Forex Flash: UK - Devaluation Delta - Nomura

FXstreet.com (Barcelona) - Nomura economist Philip Rush notes that external trade´s response to sterling's devaluation has disappointed consensus forecasts.

However, he feels that belief that rebalance is only delayed still supports optimistic growth forecasts. He writes, “Our framework incorporates variable trade elasticities. We see a low response because it was a competitiveness shock that also depressed the equilibrium exchange rate.”