UK: Economy guided by the Brexit talks – Westpac

In view of Tim Riddell, Research Analyst at Westpac, the inability of May’s strained, minority government to provide clear proposals for customs and the Irish border, let alone their blueprint White Paper for post-Brexit relations with EU, in front of the EU Leaders’ summit at the end of this month is increasing pressure around the Brexit Bill debates due for 12th June.

Key Quotes

“Any perceived government failures will increase pressure on the Brexit- divided Cabinet. Though a softer Brexit might be seen as GBP supportive, increased uncertainty should cap GBP rebounds.”

“A series of critical data relating to the beleaguered household are set to be released next week. Real wages should transpire from the employment report and inflation data while consumer activity is clearly expressed in retail sales.”

“GBP/USD rebounds from the low 1.30s are likely to struggle in the 1.35-1.37 area in what should establish the upper bounds of a lower 1.28-1.37 range.”