GBP under pressure – BBH

Analysts at BBH note that Sterling has been weakened by two developments and first among them is that some 62 Conservatives have pressed Prime Minister May for a quick and clean break from the EU (hard line).  

Key Quotes

“May is expected to clarify the response to the EU's negotiating position.  Second, the UK's unemployment rate unexpectedly ticked up (4.4% from 4.3%) in the three-months through December for the first time in a couple of years, though the jobless claims fell in January.  Employment growth in the last quarter of 2017 was half (88k vs 165k) expected.”

“Sterling has also slipped to a new five-day low.  It is currently testing support near $1.3930.  A clean break may spur a move toward $1.3800 in the coming days.  The euro, which was turned back from the GBP0.8900 area last week found demand near GBP0.8800.”