Thin trading in the Asian session with China and Japan on holiday today. Sterling is just about holding up against the majors following Friday’s release of very weak Q1 GDP data. The British Home Secretary Amber Rudd resigned yesterday evening, having been under increasing pressure in the wake of the immigration-target scandal. Her successor has yet to be appointed. Prime Minister Theresa May is also under pressure from warring factions within her own cabinet and party over the issue of whether the UK will maintain some kind of customs union with the European Union once it has left the EU in March 2019. There are not many tier-one UK data releases this week for markets to somehow anchor their views about UK rates and Sterling. April PMI data for the manufacturing sector and services are due out on Tuesday and Thursday, respectively.
