Sterling Extends Downside
GKFX Financial Services Ltd | Jun 20, 2017 23:24
Sterling has fallen further after headlines came from sources close to the DUP/Tory discussions that talks were not going that well. There has been no deal currently and it's almost two weeks since the general election. Some of the sources had some quotes that painted the negotiating team in a bad light as they said that the DUP had been surprised at the lack of negotiating experience within the government. That certainly doesn’t bode well for Brexit!
Whether a deal gets done in the next 24 hours or not, it seems that the talks are becoming more and more damaging for Theresa May as the hours tick by. A deal is still expected, but it looks likely that we head into the Queen’s speech before this is finalised.
Sterling has seen an aggressive fall to the downside, after initial negativity this morning. We spoke of the post election low, down at 1.2635 as an area of support but that has been taken out with this afternoon’s headlines and have set a new low at 1.2602. Short term we will have to be looking to the upside now for some kind of relief rally from the new lows, with stops just below the low.
There is a decent amount of headline risk attached to cable at the moment so we should keep an eye on Twitter and the wires for any headlines on the DUP as the move this afternoon is all on unconfirmed headlines.
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