GBP having its worst week in a year – BBH

Analysts at BBH note that Sterling's slide has accelerated this week and is having its worst week in a year, shedding about 2.5%.  

Key Quotes

“It is not due to a shift in interest rate expectations.  The implied yield on December short sterling futures contract has eased a single basis point.  Sterling fell by more than three cents.  It was recovering from the losses spurred the face of weaker than expected manufacturing and construction PMIs, when May gave a milquetoast speech at her party's conference.  Recall too that as of last September, speculators had a net long sterling position in the futures market for the first time in two years.  The late longs were in weak hands.”

“There is a rebellion within the Tory Party.  Shapp, the former Tory Party Chair reportedly has a list of colleagues who want a new leader.  Reports suggest there are presently around 30 Tory MPs on the list, including several former cabinet officials and cuts across the Brexit divide.”