GBP: Downside pressures? – Westpac
The key concern for UK and also GBP in the coming week is whether Prime Minister May can convince DUP and fractious groups within the Tory gov’t that the Irish border issues can be resolved, according to Tim Riddell, Research Analyst at Westpac.
“Without this, progress in currently deadlocked Brexit negotiations could undermine confidence in May to deliver a positive result for March 2019. Even the DUP agree that political vulnerability has been laid even more bare and so any initial GBP rebounds on an agreement are likely to capped.”
“CPI, housing employment and wages data over the next week will prove critical barometers of just how strained the UK consumer is likely to be into the Christmas season. They will also be critical inputs into the BoE meeting on 14th Dec.”
“GBP/USD already appears to have failed in front of 1.3550 and any further Brexit stumbles could reinstate downside pressures.”