Home GBP: UK Leadership Challenge Falling Short; All Adds Up To Range-Bound EUR/GBP – SocGen
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GBP: UK Leadership Challenge Falling Short; All Adds Up To Range-Bound EUR/GBP – SocGen

The pound is looking for a new direction after PM Theresa May seemed to have survived a leadership challenge. What’s next?

Here is their view, courtesy of eFXdata:

Societe Generale Research discusses GBP outlook in light of the latest development with regarding to the UK leadership challenge.

UK Conservative rebels have fallen short of garnering the signatures need to mount a leadership contest.  If getting 48 signatures is this hard, the chances of ousting the Prime Minister are even harder. But at the same time, the DUP is flexing its muscles, and whether the current deal can get through the House of Commons remains doubtful. ‘A deal’ is still more likely than no deal, but there are plenty of twists and turns left

For the pound, it all adds up to a range-bound EUR/GBP despite the elevated vol and stretched risk reversals. GBP/USD is supported by EUR/USD and by the dip in US bond yields, which may yet squeeze some more sterling bears out of their positions,” SocGen argues.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.