London — Even as Brexit talks lurch from one hurdle to another, the pound is enjoying a rising wave of confidence among investors and analysts. Aberdeen Standard Investments recently added to sterling long positions, betting it will rally in 2018 as Britain and the EU make better progress in their negotiations than the market expects. The currency will also benefit from the prospect of interest-rate increases by the Bank of England, according to the UK firm and JPMorgan Asset Management. Strategists at SEB recommend buying the pound while those at Nomura International see room for gains next year. Option-market sentiment on sterling is now the most bullish in two months and is one of this quarter’s top performers among major currencies against both the dollar and euro. Concessions made by Britain last week on the contentious Brexit bill suggests the likelihood of further "UK capitulation" on other topics, allowing a transitional deal and giving the Bank of England a green light to r...
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