Overview
Efforts by a UK Prime Minister, emboldened by a strong electoral victory, will ensure that trade negotiations with the EU are not extended as the divorce has encouraged further profit-taking on sterling. After testing the $1.35 area on the exit polls last week, sterling had returned to where it closed before the results were known near $1.3160. Sterling is leading all the major currencies lower against the dollar, and the large accessible emerging market currencies (e.g., South African rand, Turkish lira, Russian rouble, Hungarian forint) are also weaker today. The global equity rally was