SocGen on what's next for the pound
Societe Generale Research discusses discusses GBP outlook in light of the latest Brexit development.
"UK PM Theresa May survived the vote of no-confidence in her leadership of the Conservative Party. That does nothing to deliver a Brexit deal that is acceptable to Parliament and the rest of the EU, however. The 'meaningful vote' on her deal has to happen by January 21 and she probably isn't in a hurry to hold it earlier. Nor will the EU be in a hurry to agree concessions in part because if they do so, the UK will come back and demand more," SocGen notes.
"There isn't much to help sterling therefore. GBP/USD will follow EUR/USD and 0.89-0.91 will probably capture the bulk of EUR/GBP trading for the rest of 2018," SocGen argues.
EUR/GBP is currently trading at 0.8982.
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