Brexit saga to keep pound in deep waters: Angel Broking

Monthly Report on Currency by Mr. Prathamesh Mallya (Chief Analyst- Non-Agri Commodities & Currencies, Angel Broking):

"At present, Sterling Pound is heavily dependent on sentiment which is sensitive to Brexit. Recently there was a clash between the Upper House of the UK Parliament and the UK government, with the latter threatening to abolish House of Lords if it holds up Brexit bill. Not only this, there are talks of UK Prime Minister agreeing to a new referendum vote for Scotland post brexit negotiations. All of these titbits are definitely influencing the investment decisions of market players who are bearish on pound for the time being.

Brexit not being the only key event, there are other major events such as the FOMC policy meeting (14-15 Mar'17) and the Dutch elections (15 Mar'17) which will predominantly influence the market trend for all the asset classes. On the domestic front, there has been a series of economic data releases from the nation which has come better than the expected levels despite demonetization. This clearly shows that with strong economic fundamentals India is well equipped to face the uncertain global road ahead."

Source : Equity Bulls

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