UK: Sterling has managed to recover from the initial slide - BBH

Research Team at BBH, suggests that in the heavier US dollar context, sterling has managed to recover from the initial slide to $1.3060. 

Key Quotes

“That slide was driven by news that MPC member Weale, who last week voiced some opposition to the dovish signals from Carney (and the minutes), said the flash PMIs convinced him of the need for immediate monetary support.  Initial resistance is seen near $1.3160 and then $1.3220. 

Tomorrow's first estimate of UK Q2 GDP may only be interesting in passing.  Despite some claims that the referendum was already having an impact in Q2, the economy may have actually accelerated a touch.  More important may be Thursday's house prices and business survey.  Reports suggest prices of residential real estate in the London area have fallen sharply over the past month. 

The euro is firm today after testing the $1.0950 area yesterday, which was the first session since early-March that the euro did not trade north of $1.10.  Today it is, but not by much.  It appeared to stall near the lower end of a band of resistance that extends from $1.1030 to $1.1060.  The news stream is light, and the market is awaiting the stress test results at the end of the week.”