Expect GBP to retain a defensive posture - Scotiabank

Analysts at Scotiabank noted that cable skidded lower yesterday as Brexit politics re-emerged as a risk factor for the pound.

Key Quotes:

"Losses were compounded today by a big miss on the industrial production data. IP fell 1.3% in October - partly due to an oil shutdown but manufacturing dropped 0.9%, the most in eight months. Yesterday, PM May’s government were forced to allow a vote calling for the government to lay out its Brexit plans but, in return, the PM is forcing Conservative MPs to back her plan to trigger Brexit by endMarch.

PM May portrayed somewhat negatively in this episode—climbing down versus a Labour demand and forcing Conservatives to toe the line in terms of the March Brexit trigger deadline. Expect the GBP to retain a defensive posture."