GBP/USD:  a push to remove PM May now remains a very low risk  – Scotiabank

Analysts at Scotiabank noted that sterling has weathered the overnight tariff “storm” relatively well and is trading little changed overall from levels seen late yesterday.  

Key Quotes:

“Perhaps it’s the football match that is slowing markets down. It helps also that GBP sentiment was already beaten up by domestic political developments.”

“PM May’s position remains delicate but, with two weeks of the current parliamentary session to go until recess, a push to remove her now remains a very low risk, we think.”

“A bigger challenge will come in  Oct,  when she will have to try and move Brexit legislation through parliament. In the meantime, investors can perhaps focus a little more on the bounce in the UK economy and the potential for an Aug rate increase by the BoE.”