Battle for PM intensify between Johnson & Hunt

24 June, 2019

Joe Goodwin

This week will see the battle for PM intensify between Johnson and Hunt.

Jeremy Hunt today accused Johnson of trying to ‘sneak in through the back door’ by avoiding media attention. Instead, suggesting that he should earn the trust of his peers by subjecting oneself to scrutiny and to answer key questions about the decisions he’d take as PM.

As it stands there is no sign that Johnson will change his strategy and engage in more television debates, though the only thing that is in the media is Johnson’s private life, which unsurprisingly has not affected the value of the pound.

The key change now is that while the leadership contest once looked like a one-horse race, it’s now a genuine contest which means greater and continued uncertainty for the pound. And, with no concrete certainty over when the UK will leave the EU, Forward contracts will be a key tool to anyone needing to transfer currency in the next few months. Forward contracts give the ability to ‘fix’ the exchange rate in advance of needed to transfer funds in order to remove uncertainty.

This week’s eco-stats

TUE – USD Fed chair speaks
WED – NZD Rate statement
WED – GBP inflation report
WED – USD core durable goods orders
THU – USD final GDP q/q