Cable weaker as UK stocks rise
Cable (GBPUSD) has started the week off getting pummelled from all sides, demonstrating that in spite of the weekend’s excitement over the (perfectly performed) Royal Wedding, there is no such sentiment on offer when it comes to investment. Sterling continues to suffer from the political uncertainty that comes with a weak and under-performing Prime Minister, who naturally attracts predators in the way free bars attract journalists. There are some early mutterings of a surprise autumn General Election, and there can be no doubt that the political knives are being sharpened. Added to her ongoing failure to properly get the Brexit talks by the scruff of the neck and impose some leadership, the resurrection of the question of Scottish Independence by the SNP just seems to be kicking her while she’s down. This cloud has had a silver lining in the form of a boost to the stock market, but the continuing uncertainty over the remaining lifespan of Theresa May’s term in office is likely to exert an influence. We would continue to buy UK100 dips, and you can be sure there will be an adequate supply of those.