GBP still under pressure despite the rebound – Danske Bank

Sverre Holbek, Senior Analyst at Danske Bank, assessed the prospects for the Sterling in light of the recent events and price action.

Key Quotes

“GBP rebounded after Theresa May’s speech on the government’s Brexit plans, as it did not bring much new stuff to the table. In our view, the most important news was that parliament will get to vote on the final deal (principle one), which, combined with May’s optimism, probably prompted a GBP rally”.

“However, uncertainty remains high, as we still expect GBP to remain under pressure in coming months as the triggering of article 50 moves closer”.

“Given that PM May has promised that parliament will have to vote on the Brexit deal before it will be implemented, the Supreme Court’s ruling might be less relevant now, leaving scope for a rebound in GBP now rather than in connection with the Supreme Court ruling”.

“However, May’s promise that the parliament will vote on the final deal probably does not remove concerns among parliament members who are against Brexit and Scotland’s concerns about access to the single market”.