GBP: Driven by politics – TDS

Analysts at TD Securities note that GBP was slightly softer in the wake of the resignation of Brexit secretary David Davis and his deputy Steve Baker from the UK government though the reaction was relatively muted.

Key Quotes

“As it stands the accord on the "soft Brexit" strategy agreed at the end of last week was seen as a positive development, albeit with plenty of compromises and uncertainty over how the EU responds.”

“We think the path ahead is complicated, with May set to present her plans to the 1922 committee of senior Tories today and the "White Paper" on Thursday. Against this background markets will wait and see whether other key resignations follow.”