GBP had been rather resilient after triple misses of wage growth, CPI and retails sales. But selling finally picked up after comments from BoE governor Mark Carney yesterday. And GBP is now trading as the second weakest one for the week, just next to NZD.
Carney noted that Brexit uncertainty had prevented a “surge in investment” And, “unfortunately that means in the short term that the speed limit (of the British economy) is not increasing. Productivity is not increasing, which will limit the rate at which people’s wages can pick up.”
Near term action bias in GBP is starting to turn bearish.