UK: Harder negotiations on Brexit to weigh on GBP - Westpac

Research Team at Westpac, suggests that the reality of “hard”-er rather than soft negotiations on Brexit should weigh on confidence, business investment, consumer activity and GBP.

Key Quotes

“Coming survey data is likely to reflect the underlying concerns of the CBI business trends. This should maintain the bias of BoE’s accommodative stance, despite fears of a collapse in confidence having been averted.

Technical: Tightening near-term ranges indicate GBP weakness rather than risks of retracement squeezes. Rebounds have been capped and momentum turns are being unwound through time rather than price. A break of 1.2170 should trigger a slide to the 1.18-1.20 attraction zone.”