According to Tim Riddell, Research Analyst at Westpac, UK PM May’s vulnerability has continued this week as amendments to the Withdrawal (Brexit) Bill have highlighted the widening differences of opinion within the minority Tory Party.
Key Quotes
“This will be a recurring issue as Brexit negotiations progress to customs and trade issues, as well as the contentious Irish border.”
“All of this is likely to appear like procrastination and push negotiations back with increasing frustration in EU and within UK. Such uncertainty is also being manifest in delaying UK investment.”
“This has been most apparent within the faltering UK retail sector but there are also signs of faltering in other service area as well as recently firm export-orientated manufacturing sector. The next BoE Agents’ Report will therefore provide important insights which are also critical for the BoE.”
“Avoiding defeat this week may allow GBP to stabilise, but Brexit issues will return, weighing on both confidence and BoE, GBP/USD rebounds should struggle around 1.3500 as a 1.28-1.37 range develops.”
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