Markets likely to focus on fundamentals

The punting of the Brexit decision into the future enables us to focus once again on UK economic fundamentals.

The news last week confirmed that the UK is performing like most developed markets. A healthy labour market is creating jobs and generating substantial wage gains, but this has yet to translate into meaningful inflationary pressures, as core inflation measures stay at or below central bank targets. This, combined with Brexit uncertainty, means the Bank of England is likely to sit out the next few months, much like its G10 peers. However, the pound remains cheap by most measures and we maintain a positive outlook for the next few quarters.

GBP/PLN (15/04/19 - 23/04/19)

Source: Bloomberg Date: 23/04/19

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

 

Keywords Ebury, GBP