Political considerations weigh down Sterling
Cable (GBPUSD) has inevitably found itself looking a little soft as we head into the weekend, weighed down by UK political considerations after what has been an interesting week for the UK. Both major parties suffered resignations by MPs for differing reasons, although the one common factor that they do all share is an unwillingness to put their “principles” to the test of a by-election in order to ensure that they retain the support of their constituency. The UK is a mere 35 days away from Brexit, and the Government is still dithering about wringing its hands and evidently not knowing what to do, or, perhaps more worryingly for the UK, what they should have been doing in the 974 days since the question was put to the people. That’s correct, they’ve had nearly a thousand days to figure this out and still have as much clue as a bunch of farm animals with a 500 piece jigsaw puzzle. It’s difficult to see much scope for improvement in the outlook for Sterling unless someone starts getting their act together, a prospect that looks very remote indeed. Any buying in the market today is probably just people reducing risk simply because having an exposure over the weekend feels a little reckless.