GBP still under pressure – Danske Bank

In view of Allan von Mehren, Chief Analyst at Danske Bank, the Sterling should remain under pressure in the near term.

Key Quotes

“In the majors, focus in the beginning of the week will be on GBP and the ramifications of the UK election result and the path towards Brexit talks”.

“Until we get more clarity on the formation of the new government and its stance on Brexit, GBP is likely to trade with a ‘government uncertainty premium’ on top of the already imbedded ‘Brexit uncertainty premium’.

“Note though that speculative investors added net short positions in GBP ahead of the UK election last week”.