“GBP has ended the week as the best performing G10 currency on a 5 day view and the only one to outpace the USD,” note Rabobank analysts.
Key quotes
“For a currency that has been so beleaguered in recent months, this is a notable event. Better than expected UK retail sales data helped to lighten the mood during the course of the week but most of GBP’s gains followed the headlines that Labour Leader Corbyn has stepped up his efforts to avoid a no deal Brexit.”
“Corbyn has written to other political party leaders and Tory rebels seeking support in a potential vote of no confidence against PM Johnson. The pace of the political news flow can be expected to step up once parliament returns from the summer recess on September 3 and this is likely to determine whether the pound continues to recover ground or whether it slams through key technical support levels in the next couple of months.”
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