The report examines the FX market landscape, noting that GBP remains stable despite political transitions in the UK. Meanwhile, USD strength is expected to be dictated by upcoming Fedspeak and geopolitical tensions surrounding the Strait of Hormuz.
Key Takeaways
- 1.Sterling shows resilience to UK political leadership changes, but this lack of political risk premium creates potential downside if fiscal concerns resurface.
- 2.USD drivers for the week center on Fedspeak regarding potential rate hikes and geopolitical developments in the Strait of Hormuz.
Table of Contents
- FX Daily: Lack of GBP political premium cuts both ways
- USD: Eyes on Fedspeak and Hormuz
- EUR: 1.140 can be tested soon
- GBP: Sterling seemingly fine with potential change in PM
- CEE: FX is getting moving
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Authors
Francesco PesoleFrantisek Taborsky
Securities
DXY
Themes
Political riskMonetary policy
Regions
EuropeMiddle EastUnited KingdomUnited StatesPoland