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- GBP may suffer a lack of fresh direction until the new PM is in place – Rabobank
GBP may suffer a lack of fresh direction until the new PM is in place – Rabobank
The pound is trading above last week’s lows vs. the USD and it holding most of its recent gains vs. the beleaguered EUR. As there is still a long way to go before the new leadership can prove its worth to sceptical investors, the GBP is likely to have to wait until seeing a fresh start, economists at Rabobank report.
Awaiting a government less distracted by scandal and more focussed on the job in hand
“For GBP a crucial element of the policies of the new PM will be how they can underpin the growth outlook. However, this is a complex ask. Although many of the candidates are promising to lower taxation in the UK, in line with traditional Tory values, this could clearly raise inflation further if not handled properly.”
“Although GBP investors will be hoping for a government less distracted by scandal and more focussed on providing coherence around the post Brexit economy, the jury is still out. GBP may suffer a lack of fresh direction until the new PM is in place.”
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