The Brtish Pound is undoubtedly on the back foot as data remains disappointing. But it is not only about the data but also about politics.
Here is their view, courtesy of eFXdata:
BTMU Research discusses GBP outlook and notes that the real driver of the pound over the short-term is now more related to politics than the economy.
“The political climate surrounding Brexit has taken a notable turn for the worse following a podcast for Conservative Home by lead Hard Brexiter Jacob ReesMogg who accused the government of “abject weakness” over plans agreed on a backstop Customs Union deal,” BTMU adds.
“However, while this will reinforce the recent speculation of a snap election, we remain unconvinced. Will this faction really risk bringing the government down?
It will be difficult for the pound to advance until this political uncertainty recedes somewhat,” BTMU argues.
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