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GBP/USD's rough ride so far – UOB

Analysts at UOB group explained that GBP/USD went through a roller coaster ride on news from UK media that about 40 lawmakers from the ruling Conservative Party had agreed to sign a letter of no-confidence against PM Theresa May, protesting that she has not been pushing strong enough on implementing “Hard Brexit”. 

Key Quotes:

“As a result, GBP/USD fell hard from nearly 1.3200 to as low as 1.3065 before stabilizing somewhat around 1.3100. After the BoE delivered its widely expected “dovish hike”, we turned negative on GBP/USD as we see little support going forward and that Brexit risks will now drive the GBP/USD lower. We see gradual weakening in GBP/USD back below 1.30 to 1.26 by 3Q18.”

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