UK politics is still a mess and uncertainty still dominates - SocGen

Kit Juckes, Research Analyst at Societe Generale, notes that the Angel Merkel says she expects Article 50 to be invoked soon after the election of a new British Prime Minister.

Key Quotes

“She also says that cherry-picking terms of access to the single market is out of the question. Andrea Leadsom wants exactly that, while Theresa may has no intention of invoking Article 50 this year. In short, UK politics is still a mess and uncertainty still dominates. This week’s focus is on the MPC, which will probably (after recent hints and comments) cut rates by 25bp and re-start asset purchases. That’s mostly priced in but any sterling bounce will be short-lived.”