UK Pound: Any respite is still a chance to sell - SocGen

Kit Juckes, Research Analyst at Societe Generale, notes that the UK Chancellor is considering cutting corporation tax; the Bank of England Governor is considering voting for a rate cut this summer.

Key Quotes

“The BOE’s Financial Stability Report is due out tomorrow and that will be interesting –an opportunity for the BOE to address the threats posed by leaving the EU. But as for the pound – any respite is still a chance to sell. The press is tempted to interpret a sterling-induced bounce by the FTSE 100 as a sign that the economic fallout of the decision to leave the EU won’t be as bad as some feared but that’s complacent thinking.”