2 May 2016
Easing of Brexit fears helping in Sterling’s surge - BBH
Research Team at BBH, suggests that the broad dollar weakness and some apparently easing of Brexit fears helped lift sterling to two-month highs near $1.4665.
Key Quotes
“The technical indicators are constructive and consistent with additional near-term gains. We suspect sterling can climb toward $1.4800, barring some shock. Initial support may be near $1.45.
Local elections on May 5 could show that despite the divisions within the Tory Party, Labour is not yet capitalizing on it, which means it may win fewer than average council seats. It means that should a Brexit vote create a political crisis; Labour may not be in a position to secure a majority.”
Key Quotes
“The technical indicators are constructive and consistent with additional near-term gains. We suspect sterling can climb toward $1.4800, barring some shock. Initial support may be near $1.45.
Local elections on May 5 could show that despite the divisions within the Tory Party, Labour is not yet capitalizing on it, which means it may win fewer than average council seats. It means that should a Brexit vote create a political crisis; Labour may not be in a position to secure a majority.”