UK: Politics failed to quell uncertainty - Westpac

A remarkable political week, with the first minority government since 1970s, has failed to quell uncertainty: the Queen’s speech (legislative agenda for year ahead) is being delayed, no post-election budget date yet and risk that the start to Brexit negotiations may be delayed, explains Tim Riddell, Research Analyst at Westpac.

Key Quotes

“Consumer, business and housing sector data into end-Q2 will have considerable weight. Markets will be acutely aware of the risks to activity if these deteriorate. The BoE’s Agents’ Report will be keenly awaited by both markets and officials. Carney’s keynote Mansion House (15th) speech is of interest.”

“An offset to the weight of accommodation and economic uncertainty is the potential for a softer Brexit. GBP/USD may be confined now within a volatile 1.25-1.30 range.”