May day for Theresa?
24 September, 2018
Friday saw the gains made by Sterling wiped off on the back of comments made by Theresa May. Following her meeting with EU negotiators in Salzburg, where they all but rejected the Chequers deal laid forward, May’s speech further dampened Sterling’s plight. With Theresa May adamant the Chequers deal is the way forward, her own party seems to have turned against her, while her meeting was in progress in Salzburg, 40 of her MPs and backbenchers said they thought the deal ‘was dead in the water’.
The lack of support offered to her and rumours spreading that there may be a leadership challenge along the way, will Mrs May be in charge by the time Brexit is over? EU negotiators seemingly in a ruthless mood, with some saying their social media post on Thursday was a clear message that they believe they have Theresa May cornered and under extreme pressure. In fact, Thursday’s speech by Theresa May, immediately after the Salzburg meeting, dubbed her worst one yet, and the signs are clear that she might be beginning to crack under the pressure. Her constant stumbling and her less than convincing note leaving more questions surrounding her ability to deal with the current predicament.
Friday’s speech where Theresa May said, ‘a no deal is better than a bad deal’ is so far the clearest indication that we could be now heading towards a no deal. Her comments saw GBPEUR lose 1.5% and GBPUSD lose 1% on the markets, The 6 week high now a distant memory, are we now heading to the 1.05 mark and 1.20 mark against its major pairings that has now been long talked about? With further talks still planned further ‘no deal’ indications are sure to send the rates further down. You are now already 1,500 Euro’s worse off than this time last week on a £100k purchase, are you in a position to risk losing further should the worse arise?
With the lack of UK data this week, we could yet see further ground lost and finishing the week on a new low is not out of the equation. Speak to your CI account manager today to be kept up to date.
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