The Sterling will likely appreciate following PM May’s resignation on the 7th of June, with her replacement to be appointed in the interim likely to be Boris Johnson. The question of what will happen to the pound depends on how the new PM will deal with the Brexit issue. Regarding the economic data, retail sales were better than expected while inflation increased above the Bank of England’s target earlier in the week and provided a good mood for the sterling too. In contrast, if the Brexit deal is not done, the BoE will resume on the sidelines when it comes to its next policy move.

 

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Christos Nikolaou

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