GBP/USD: weakness looking stretched? - Scotiabank

Analysts at Scotiabank explained that Sterling remains soft as investor price “hard Brexit” risks back into the pound.

Key Quotes:

"Investor price “hard Brexit” risks back into the pound following PM May’s remarks at the weekend suggesting that border security and control over legislation was paramount over access to the EU single market. Sterling has lost 2.5% since Friday’s high and we think the near-term prospects for the pound – broadly – remain soft."

"From a longer-term point of view, we do think, however, that the pound’s weakness is starting to look stretched but a rebound for the GBP may not occur until investors have a better sense of the Brexit timetable and the government’s plans for the aftermath. UK equities – at a new record – seem to like GBP weakness."

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.