UK: Politics set to remain in focus - ANZ
In view of analysts at ANZ, UK political risk will remain a key driver of GBP volatility.
“The UK Budget (22 Nov) may deliver some expansionary fiscal policies, with the prospect of somewhat stronger growth ahead potentially providing some momentum for sterling. But it’s the progress in the Brexit talks that will determine direction. The EU wants to see sufficient commitments from the UK by Friday (24 Nov); otherwise, any trade talk could be postponed to March next year (at best). Whichever way it goes, one should brace for higher volatility.”