Another MP resigns

17 July, 2018

Nakhil Mahra

After a fairly quiet morning to start of the new week where markets remained fairly flat due to the lack of Eco data, the afternoon session got a bit more attention. There was significant interest in the PMs cabinet, where last weeks resignations had already put the pressure further on Mrs May the last thing she would have wanted was more resignations. And that is exactly what she got, this time Scott Mann, who also resigned due to Brexit, causing further distraught in the Tory camp. Rumours of a leadership challenge are picking up pace to g with the other chaos keeping Theresa May on her toes, should this be the case do not be surprised to see a Snap election, the last time we had a snap election the Pound lost 6% in value and was trading at 1.07 against the Euro. Have you got sufficient funds to cover for a swing this significant?

With Brexit still very much the spearhead in what direction the rates are going, yesterday saw another step forward, or backwards, depending in which camp you’re in. Brexiteers Customs bill amendments were accepted by the government. this was largely accepted with the negative press as a large number of MPs claiming Theresa May has given into the hard Brexiteers who are looking for a no deal, some even going as far as saying the White Paper proposals are now “dead in the water”. With so much uncertainty still surrounding UK politics, it is hard to see where GBP will break the recent trends and see an uplift in fortunes. Trading has now remained within a tight range for a couple months now barring a brief spike, suggesting sentiment is still very much against Sterling.

Today is a busier day with BoE governor Carney speaking at 9 and UK average earnings at 9.30, both expected to impact rates early doors. This is followed by Fed Chair Powell speaking at 3 pm, to stay updated with what is happening in the markets stay in touch with your account manager today.