The Dollar is once again stronger across the board, with the trade-weighted index up about 0.3% and up 1% from a month ago. Perhaps surprisingly, the USD/CHF cross has pushed 0.5% higher despite data out this morning showing that Swiss GDP growth had risen three-fold in Q1 to 0.6% qoq – twice as fast as expected – from 0.2% qoq in Q4 2018.
Perhaps less surprisingly GBP/USD continues to languish below 1.27 at its lowest level since early January. A number of Conservative Party contenders to take over from Prime Minister May, who will resign on 7th June, have publicly declared that they would be willing for the UK to leave the EU without a deal on 31st October, particularly if the EU was unwilling to agree to fundamental changes to the Withdrawal Agreement. The ruling Conservative Party performed very poorly in the recent European Parliament elections and front-runners to succeed Theresa May, including Boris Johnson, have interpreted this as a sign that the Conservative Party needs to take a clearer stance in favour of Brexit.
