GBP: More signs of a very tricky road ahead – ING

Research Team at ING suggests that the news over the weekend that the EU Chief Brexit negotiator Michel Barnier favours the sequential divorce first, trade talks after approach (ie, the EU wants to first agree to the cost for Brexit and rights of the EU citizen in the UK) rather than the UK favoured parallel approach suggest that the GBP price action should remain tricky for the most of the year.

Key Quotes

“This cloud of uncertainty should prevent any fast recovery of the undervalued GBP towards its equilibrium level. In terms of this week, the Brexit saga continues today with the House of Lords starting the debate on the Brexit Bill.”