GBP/USD: a choppy 24 hours, MPs downplayed the risk of an early election - Scotiabank

Analysts at Scotiabank explained that sterling has been choppy over the past 24 hours.

Key Quotes:

"Weakening initially at the start of the week in response to weekend press reports in the UK suggesting some risk of a snap election, reflecting the government’s inability to formulate a coherent Brexit policy."

"MPs downplayed the risk of an early election, however, and the GBP found some additional support from relatively hawkish comments from the BoE’s Vlieghe (expects 1-2 rate hikes a year for the next three years), only for more cautious remarks by Gov Carney (economy weaker than expected before referendum, Brexit is hurting households) to temper gains."

"BoE officials were addressing MPs before at the Treasury Select Committee."