GBP: Market eager to sell on disappointing news than to buy it on favorable news - BBH

Research Team at BBH, notes that the sterling is having a heavy tone today after it closed the North American session 0.5% higher yesterday to snap a five-day losing streak, it has come under new pressure today. 

Key Quotes

“The ostensible trigger was the RICS house price balance, which slumped to 5% from a revised 15% in June (initially 16%).  It is the lowest reading in three years.  It plays on concerns that commercial and residential property prices are not waiting to see if the bookmakers who have reportedly tightened up the odds that Article 50 is not triggered until 2018, if at all, are correct.  

Also, there seems to be an asymmetrical response by sterling.  The market seems more eager to sell sterling on disappointing news than to buy it on favorable news.  There was much trepidation, for example, over the third leg of this week's bond buys, and it was for the longest duration.  It went off without a hitch, but sterling slipped back down to finish just above $1.30.  Sterling has not closed below $1.30 since July 8.  Intraday resistance is seen in around $1.3025.”