GBP: Guided by Brexit uncertainties - Westpac

PM May appears to be containing rifts within her Brexit Cabinet but a softer outcome is being seen as GBP positive, according to Tim Riddell, Research Analyst at Westpac.

Key Quotes

“Need for a coherent negotiating stance will become imperative as the European summer comes to a close.”

“Although ONS data displayed weakness into this month, manufacturing PMI and housing data have shown remarkable resilience.”

“Confidence around the impact of Brexit remains critical. On the basis of the above, EURGBP appears to have peaked at 0.90 while GBP/USD is driven as much by current negative USD sentiment.”