Sterling has remained under relentless pressure in today’s session, despite the release of another decent set of labour market data. The GBP/USD cross temporarily fell below 1.24 in afternoon trading, a new multi-month low.
Growth in real weekly wages rose to 1.9% yoy in May from 1.5% yoy in April but markets focused instead on the two premiership contenders’ stance on Brexit and growing concerns about a no deal Brexit. In particular, Boris Johnson and Jeremy Hunt have both denigrated the “back-stop” – the insurance policy that would see Northern Ireland (temporarily) remain in a customs union.
