Markets focus on Brexit developments

The August meeting of the Bank of England had no major impact on Sterling, as the Bank kept policy unchanged and markets continue to focus exclusively on Brexit developments.

Our view that no solution to the Brexit dilemma is possible without a general election was boosted last week when a pro-Remain Liberal Democrat victory on a Conservative seat cut Johnson's parliamentary lead to just one seat. Sterling, in fact, managed to stabilize last week, ending the week essentially unchanged against the Euro.

GBP/PLN (29/07/19 - 05/08/19)

Source: Bloomberg Date: 05/08/19

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