GBP: Guided by the politics – BBH

Analysts at BBH explain that sterling, which had appeared to be a beneficiary of the political uncertainty from the Eurozone, tested last month's high just above $1.26 before reversing lower ahead of Prime Minister May’s statement slated for this morning.  

Key Quotes

“There is speculation that she could call for a snap election which, given the new electoral law that fixes the election, would require some parliamentary maneuvering.  The fact that the statement will be outside 10 Downing Street has fanned such speculation of an important announcement.  The UK 10-year yield slipped below 1.0% for the first time in six months.”