GBP: Post Brexit-vote low of 1.2800 is now vulnerable - Westpac

Tim Riddell, Research Analyst at Westpac, suggests that any deterioration of business and housing conditions will weigh on GBP, which has already been softening as perceptions of what “hard” and “soft” Brexit really means have tarnished confidence

Key Quotes

“The latest BoE agents’ survey provided a timely snapshot of the UK economy in the initial stages of the post Brexit-vote. Although the impact on consumers has been limited, business investment intentions for the coming 6-12 months continued to slide to near flat. This context will raise the importance of survey data..

Recent MPC members’ speeches and last week’s BoE meeting highlighted again the potential for further BoE easing should growth prospects falter.

The post Brexit-vote low of 1.2800 is now vulnerable as GBP slips to test recent range support. A break should see a swift move to test various targets in the 1.2450-00 area.”