Mayday call from Tory Party – Has the countdown to the PM’s departure started?
30 April, 2019
Reports are now emerging that suggest the countdown to Theresa Mays departure may be on, due to her failure to deliver a Brexit deal. May is to appear before an emergency general meeting in June of all 800 conservative constituency chairs and senior activists, who will then decide whether they should demand her resignation. Reports suggest that the threshold for this meeting was reached last night to demand a vote on her leadership – this is the first time in in the Tory party’s 185 year history this has occurred, where the lower ranks of the party have forced a meeting which could potentially see the PM ousted.
Whilst it should be noted that the result of this meeting is non-binding, it would certainly put a huge deal of pressure on May to resign, which would open the door to a new leader, and one that would likely pursue a harder Brexit deal. With the Pound seeming to have flat-lined in recent weeks, this could see it come under pressure once again, as a hard Brexit is seen as poor for the economy. Add to that the extension to Brexit has not done GBP any favours, as it has only seen uncertainty resume, and as a result means the bank of England are less likely to raise interest rates in this period – again this puts the Pound and GBP buying rates under pressure.
This notion that May could resign raises more problems, as either we would see a general election, and in the current landscape one which the Labour party would win – bad for the Pound. Or we wold see a new Tory leader, one who would have a different stance towards Brexit which wold likely lead to another extension on article 50, and so a further increased period of uncertainty – bad for the Pound. Non-withstanding a change to the current situation, it seems therefore that the ongoing drama with Brexit will only lend to a weak Pound for the foreseeable future.
Given that for the last few months we have seen the Pound range bound and trading within a couple of cents, (and at present we are sat close to the bottom of this range) now might be a good time to consider securing your currency, before more political uncertainty ensues and the Pound suffers further.
Even those readers with the most hungry appetites for risk may like to consider securing a tranche of your required currency, to mitigate the risk in an increasingly uncertain market.
Speak to your Currency Index broker today for some friendly and professional guidance, and some of the ways we can assist you to help keep the cost of your currency transfer down.
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