GBP under pressure on UK politics, Brexit – Danske Bank

Chief Analyst at Danske Bank Allan von Mehren assessed the prospects for the British Pound.

Key Quotes

“GBP weakened during UK PM May’s speech on Friday although the speech did not include any news compared to the details that had been leaked already. However, price actions underscore that Brexit uncertainty will continue to be a headwind for GBP as long as negotiations continue without meaning full progress”.

“The fourth round of Brexit negotiations start today and the following joint press conference on Thursday between Brexit Secretary David Davis and EU’s chief negotiator Michel Barnier is going to be important. We still see risks slightly skewed to the upside for EUR/GBP going into the Conservative Party conference on 1 -4 October”.