Sterling was buffeted by conflicting headlines, as explained by analysts at Scotiabank.
Key Quotes:
“The first suggesting that the UK would possibly stay in a customs union with the EU beyond 2021 lifted the GBP sharply to the upper 1.35s while a subsequent denial saw the GBP sell-off back to the upper 1.34s.”
“Brexit policy remains in flux and the government appears deadlocked on how to proceed.”
“We think the uncertain outlook around Brexit policy may continue to weigh on the GBP in the near-term, especially as markets remain to be convinced that the BoE is in any position to raise rates in the next few months.”
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