CHART OF THE DAY: Horrendous (UK Industrial Production)

Since calling out a -50% crash in an Emerging Market currency like the Argentine Peso (and their subsequent begging for a bailout from the IMF in EARLY 2018) is too easy to explain, let’s do the British Pound:

1. Coming out of Q4 2017’s #PeakCycle UK inflation readings, the BOE was hawkish
2. As we’ve rolled through 2018, the UK economy has slowed into #Quad4
3. The British Pound has been an awesome short against our #StrongDollar call since April 

That’s right. I didn’t mention anyone’s political thoughts about Brexit, did I? Where do I think the Pound bottoms? Well, that’s pretty straightforward – when the rate of change of the UK economy stops slowing and comes out of Quad 4.

Yesterday’s Industrial Production print in the UK was horrendous at -0.8% year-over-year growth. Do you think the #slowing UK economy has affected the political prospects of Teresa May? Of course it has.