GBP/USD: Fiscal policy and Brexit matter more than politics – HSBC GBPUSD UnitedKingdom Brexit EURGBP Banks
resignation. Looking through headline noise and short-term volatility, economists at HSBC believe fiscal policy and“UK political volatility appears to have overtaken GBP volatility in recent days, with the GBP not reacting much to Mr Johnson’s resignation.
“On Brexit, any signs that a new leader or government is taking a more collaborative approach with the EU might also support the GBP. This would help to lower the tail risk of a breakdown in the UK-EU relationship over Northern Ireland, and lower the possibility that the UK might face even greater barriers to trade – such as new tariffs – with the EU.”Information on these pages contains forward-looking statements that involve risks and uncertainties.
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