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23 Mar 2016
UK: Sterling is heavy - BBH
Research Team at BBH, notes that after closing poorly yesterday, follow-through selling has pushed sterling to toward $1.4155.
Key Quotes
“While some of the short-term technical readings are getting stretched, we are cognizant that in the week ending March 15, speculators in the futures market bought a record amount of sterling contracts. These late longs are in weak hands, and their culling could extend sterling's decline.
The dollar's recovery in general and Brexit anxiety, in particular, is weighing on the pound. It is not just yesterday's attack on Brussels, faux pas by one of the leading spokespersons for the remaining in the EU camp, the Chancellor of the Exchequer Osborne.
Osborne's economic plan was the centerpiece of the Tory's campaign less than a year ago. It now lays in ruins. Much sacrifice has been demanded, but the objectives remain elusive, even with some trickery. Even if the other economic assumptions prove accurate, there is a GBP4.4 bln budget gap that will not be addressed in the Autumn Statement. The question many are asking now is whether Osborne will deliver it.”
Key Quotes
“While some of the short-term technical readings are getting stretched, we are cognizant that in the week ending March 15, speculators in the futures market bought a record amount of sterling contracts. These late longs are in weak hands, and their culling could extend sterling's decline.
The dollar's recovery in general and Brexit anxiety, in particular, is weighing on the pound. It is not just yesterday's attack on Brussels, faux pas by one of the leading spokespersons for the remaining in the EU camp, the Chancellor of the Exchequer Osborne.
Osborne's economic plan was the centerpiece of the Tory's campaign less than a year ago. It now lays in ruins. Much sacrifice has been demanded, but the objectives remain elusive, even with some trickery. Even if the other economic assumptions prove accurate, there is a GBP4.4 bln budget gap that will not be addressed in the Autumn Statement. The question many are asking now is whether Osborne will deliver it.”