UK: Sterling’s revival continues - Investec

Research Team at Investec, notes that the Sterling’s revival continued in earnest yesterday breaking back above the 1.4600 barrier vs the dollar topping out close to the 2016 high.

Key Quotes

“Obama’s strong rhetoric last weekend lent support to the ‘Bremain’ campaign and with Brexit risk being priced out, Sterling continues to be the main beneficiary. With currencies trading tight ranges being the theme of the past few weeks, it was refreshing to see some life back in the FX markets. This is perhaps the pre-cursor to what should be a busy end to the week starting today.

In a speech late yesterday, BoE Deputy Governor Jon Cunliffe said the BoE won’t hesitate to act to stabilise the housing market. He pointed to three areas of concern; buy-to-let, high loan to income ratios and commercial real estate. It’s worth taking note given Mr Cunliffe’s influence at the BoE and if these comments become more vocal over the coming months.”

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