Pound is weak on Brexit concerns post political fall-out - Scotiabank

Analysts at Scotiabank explained that mayhem seems to be the market’s reaction to last week’s poll disaster for the Prime Minister. 

Key Quotes:

"The GBP is underperforming amid concerns that the government’s weakened position will leave it in a poor negotiating position into Brexit talks, which start next week. 

Surveys suggest business sentiment has weakened in reaction to the election and consumer spending appears to be weakening in response to rising inflation and low wage growth; according to IHS/Visa, consumer spending fell an annual 0.8% in May, the first drop since late 2013. Pressure is, however, building on the PM to mitigate her “hard Brexit” approach."