Brexit 'wrangling' could keep the GBP volatile for now - NAB
|Comments from Rodrigo Catril, NAB's currency strategist, explaining how the latest headlines of the UK's attempt to avoid a hard-landing Brexit scenario will result in a spike in volatility for the Sterling in the near-term.
Key quotes
"The agreement of a new 'backstop' as a last resort has been interpreted by the market as a positive step.
However, it still shows that there isn't a consensus view within the government and it's unclear if there is public support to stay in the customs union.
BOE and data are taking a back seat for now.
A proposal needs to be finalized before the end of June EU summit.
This suggests GBP will remain volatile in the coming weeks.
USD continues to win the "least ugly contest"; growth outperformance and higher yield differentials suggests USD will remain supported in the near-term."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.