Sterling’s Other Catalysts
The UK reports final Q1 GDP numbers today. After Wednesday’s surprisingly soft US print, any result close to consensus could give the pound a fillip. Perhaps more investors are subscribing to the Chancellor’s view, also delivered on Wednesday that the UK economy has moved from ‘rescue’ to ‘recovery’ mode. We already expect growth to outperform core Eurozone economies and confirmation of current trends would relieve pressure on BoE to deliver further stimulus. The problem for sterling is that all of this does not appear to be obvious catalysts for upside.
Read the full report: UBS