GBP hits 2008 low – RBC CM

Research Team at RBC Capital Markets, suggests that it is a busy week ahead for UK data and events.

Key Quotes

“This comes amidst a period of relatively sharp adjustment for the GBP exchange rate, with the latest round of weakness triggered at the start of the month following Theresa May’s speech on Brexit which we and many interpreted as a Brexit which also means Single Market exit (Smexit). This move has taken the trade-weighted index (£ERI) to the low point it reached following the failure of Lehman Brothers in 2008 and represents a fall of over 20% since Q4 last year. RBC FX strategists still look for further GBP weakness into Q1 2017 with a target of 1.15 versus USD.”