Analysts at Scotiabank noted that GBP is up modestly vs. the USD, testing fresh two week highs and extending its recent bullish reversal through 1.3400.
Key Quotes:
“Rate expectations are firming and yield spreads are narrowing in a GBP-supportive manner.”
“Next week’s (Tuesday June 12) Brexit vote is crucial as market participants asses the risks to PM May’s leadership and the potential for an early election.”
“Risk reversals are fading and hint to a softening in the premium for protection against GBP weakness.”
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