British Pound(Spot 1.2478)
British Pound (Jun 2017) YTD1.11%
The GBP has seen gains against the USD and the Euro and they could potentially persist. Theresa May has announced the formal triggering of Brexit on Wednesday 29th March. Given that this is pretty much old news we do not expect any further weakening in the pound and in fact could potentially see it continue to make gains. In the wake of the fact that the MPC had a dissenter in Kristin Forbes and the increased 2.3% percent print in the inflation rate could also add to the strength of the pound.
Unless there is a perceptible weakening in spending due to increased inflation and slowing wage growth it is going to be difficult for the pound to give up its gains. However, hawkish news regarding the upcoming Brexit negotiations could always cause the pound to reverse its course.
This last week London was the target of a dastardly attack by a British born Muslim convert who drove a car into pedestrians on Wednesday killing three people and injuring several others. He then went on to fatally stab a policeman before he was shot dead.
We are deeply saddened by this mindless act of violence and our thoughts and prayers are with those affected by this tragedy.