Politics is the driver for the pound, not economics - Rabobank

Analysts at Rabobank explained that in recent weeks, GBP has made clear that politics rather than UK economic news is its primary diver.

Key Quotes:

"Today’s ruling from the High Court that the UK government cannot trigger Article 50 without consulting parliament injected some optimism into sterling that a hard Brexit could be avoided. This may be misplaced."

"It is possible that some ‘Remain’ MPs could respect the referendum result and support PM May’s intention to trigger Article 50 by the end of March."

"If this is the case, today’s ruling (while still important for the law) will have little meaning for markets. We continue to view GBP as a vulnerable currency.

"However, if Trump takes the Presidency, GBP/USD’s recovery would likely extend towards 1.30."