Shortly before I was on Bloomberg TV today,
Leadsom withdrew from the Tory leadership context, leaving May, who favored
remaining the EU, as the likely successor of Cameron. Leadsom had
been trailing May even before her controversial weekend comments.
Sterling shot up to almost $1.3020, and as was
the case last week, there appeared to be a wall of sterling sellers lurking
there. Sterling was trading below $1.29 when the news hit and has given back half of its spike gains
to trade below $1.2940 as this note is penned.
I reiterate my views
that sterling is headed lower and the dollar,
more broadly, can still rise. It is not just divergence of monetary policy, but also the respective health of the banking systems, and
politics. Of course, US politics are their own circus, but even before the officials party confirmations, a
Trump victory, which requires winning all the swing states, simply does not
look very likely. Net-net, European politics appear to be
more of an existential threat than US elections.
The video can be accessed by clicking here.
Disclaimer
Cool Video: Whirlwind Discussion; UK, Politics and the Dollar
Reviewed by Marc Chandler
on
July 11, 2016
Rating:
Reviewed by Marc Chandler
on
July 11, 2016
Rating:
