Pound Holds Steady as May's Brexit Speech Lends Little Clarity

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(Bloomberg) -- The pound was little changed against the dollar after Prime Minister Theresa May failed to provide any new details to currency traders on how Brexit negotiations would proceed.

  • Sterling at $1.3786, still set for its second weekly decline. The pound weakens a 3rd day against the euro, losing 0.4% to 89.42 pence
  • “No new news for GBP markets from May’s speech,” said Viraj Patel, currency strategist at ING Bank in London. “The pound in the near-term is primarily trading off odds of a transition deal being agreed over the coming month”
    • “The comment that this is close to being agreed and differences on a transition can be overcome - may keep the pound supported today, though we’ll need to see what the EU have to say here”
  • In a speech Friday May said that neither the U.K. nor the European Union “can have exactly what we want”
  • Yield on U.K. 10-year government bonds -3bps to 1.44%

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