Although it is expected and understood that the UK will be aiming to strengthen relationships around the world following the result of the EU Referendum, I am unsure how people will react to Theresa May strengthening a relationship with the United States that appears on track to isolate itself from globalization.
The pound has started the new week how it ended the last one: weak. The latest slide has been in response to comments from UK Prime Minister Theresa May at the weekend, when she said Britain’s exit negotiations will “not be about keeping bits of membership.” May’s comments suggest it will be a hard exit from the European Union, as Britain seeks to control immigration and law-making among other things.
The markets did not move much since yesterday. We still see a lot of corrective price action across the board that will make U.S. dolalr even stronger in sessions ahead, while stocks stay in an uptrend.