GBP/USD should be trading lower – TDS

Policymakers in the UK can rip off the Brexit band-aid, knowing full well that they could place the blame on any lost output to COVID, per TD Securities. 

Key quotes

“The government is popular in comparison to their predecessors, which gives them more wiggle room to up the Brexit ante. With little to lose politically, and Johnson historically looking for a clean break, it will be essential to watch next month's transition deadline date.”

“Our positioning framework shows the market is short but on a relative basis that makes GBP look neutral. From here we expect another break below 1.20, as this theme gathers momentum.”