Brexit Showdown

With the gains of last week coming to a halt Sterling lost around half a cent on the Euro throughout yesterday’s trading. We are still at 2 month highs on the Euro but this could be short lived, with Mark Carney being more coy on interest rate hikes on Monday the pound has seemingly pushed back into reverse. With no key data releases yesterday and sterling dropping this may be the start of a Pound fall once again. Today we see retail figures to be released in the UK at 9.30am, the figure is expected to come in 01% lower than last month, should this be the case then expect Sterling to drop early doors.

Brexit Showdown

The second round of negotiations for the UK to leave the EU are due to take place in coming weeks. However there are still rumblings within the conservative party with Boris Johnson yesterday denying that he is to step down as foreign secretary. Boris was one of the key brexiteers of the referendum and with some of the previous promises from the out campaigners have already been written off, which as a result his credibility has come under much scrutiny as of late. This could mean that a party shake up is on the horizon in the Tory party of which there have been whispers that prime minister Theresa May is planning a reshuffle of the cabinet. As recent times have shown Sterling does not bode well with political uncertainty. Should there be a shake up in the party this could mean a different approach to the EU exit talks and with leaving the EU as complicated as it is Sterling would not fare well to more prolonged uncertainty. With these the best rates we have seen for Sterling to Euro it may be prudent to get something in place sooner rather than later should you have an imminent requirement so you are not caught out to any nasty surprises.