GBP/USD: underperforming, but why? - Scotiabank

Analysts at Scotiabank explained that sterling has been under-performing broadly while there were no UK data releases.

Key Quotes:

"Investors are rather reacting to the weekend press reports highlighting Tory party discontent with PM May’s leadership."

"Press reports suggest that nervous MPs’ with one eye on local elections due in May, fear a rout in support unless the party’s fortunes improve."

"A poor showing in the local elections could prompt pressure for a change in leadership, suggesting the PM has around 3 months to lift her game."

"The undercurrent of political risk may undermine the GBP after a relatively positive run (out-performance) over the past 3 months."