GBP/USD: A move down to 1.19 into the summer – Rabobank

Economists at Rabobank would favour selling rallies in cable towards a move down to GBP/USD 1.19 into the summer. 

Key quotes

“The poor initial response to PM’s unwind-plan will only add to widespread criticism over his government’s handling of the lockdown in March, its shortfalls of PPE in April and its lack of testing. “ 

“As no real progress was made on the last round of post-Brexit talks between the UK and the EU and given that the summer deadline for any request for an extension to the transition phase is looming, it is difficult to be optimistic on GBP.”

“We continue to expect GBP to be on the back foot into the summer and see scope for a move towards GBP/USD 1.19 on a 3-month view.”