Markets await new UK prime minister

Sterling moves will continue to be driven by political headlines this week.

Boris Johnson is expected to win the Conservative leadership contest on Tuesday, but markets have fully priced this in and we expect little reaction from the Pound. Economic data continues to confound expectations. Wages grew, as did retail sales, both above expectations. This week, with no key data on the pipeline, politics will dominate trading in Sterling. We think that the impasse over Brexit is unlikely to be resolved without a general election, so any news in this direction could add to currency volatility.

GBP/PLN (15/07/19 - 22/07/19)

Source: Bloomberg Date: 22/07/19

Author: Enrique Diaz-Alvarez, Chief Risk Officer at Ebury

Keywords Ebury, GBP