Commenting on how the PM’s speech announcing her resignation hit Sterling, Chris Towner, Director at JCRA, said: “Over the last few weeks Sterling has dropped as speculation has intensified that Theresa May needed to resign in order to clear the way for a new leader. This yet again increases the uncertainty. The chances of further delay to Brexit have now increased but so too have the chances of a hard Brexit.
“Although widely expected as she approached the podium, Sterling still managed to trade frenetically for a short period of time, before dropping back to a more settled level. Sterling is acting like a rabbit caught in the headlights. Unable to jump up or down.
“On the economic data front though, half an hour before her resignation retail sales were released showing volumes up 5.2% y/y. This is on top of a 44 year low in the unemployment rate. If only she could have brought the focus back to the economy, the exit may not have been so sad for her.”