Today’s Notable Sentiment Shifts

GBP – Sterling held on to its gains on Thursday after Boris Johnson announced he was resigning as prime minister following a rush of ministerial resignations and calls for him to step down.

Commenting on the announcement, Rabobank stated: “Some of the sentiment we’ve seen in markets today is relief that some of the scandals of the past year will be behind us. But this is mostly on hope because if you look forward it is unclear who will replace him. Sterling remains vulnerable. The growth outlook is not good and the Bank of England is constrained.”
They concluded that they “expect a recession in the next few quarters.”