Mayday, Mayday, Mayday
23 May, 2019
Yesterday saw another day of losses for the Pound as we saw increasing calls for Theresa May to resign following the huge backlash against her revised Brexit plan.
After her announcement Wednesday it seemed she shot herself in the foot, as her attempt to appease Labour failed, and at the same time, she managed to further distance her own backbench Tory party members.
This Tory backlash was apparent yesterday as during Prime ministers question time many of them were nowhere to be seen. In part no-doubt voting with their feet as a show of no confidence, but with many suggesting they were meeting to discuss how they could bring about her resignation.
Last night, and in what could be the first of many, we saw the first high ranking Tory MP resign as Andrea Leadsom the leader of the commons quit saying that she no longer believed the government’s approach would deliver Brexit.
It is rumoured that several other cabinet members including Home secretary Sajid Javid will follow, as many simply feel this is the end of the line now. And whilst Theresa May avoided being ousted by the 1922 committee in December (and in doing so bought herself a 12-month amnesty from it happening again) the pressure is building fast now, and it is questionable as to whether she will be able to stand the heat.
Whilst we have economic data releases today –most notably Eurozone Markit services data at 09.00, all eyes will be firmly fixed on the UK, and Mays finely balanced House of Cards.
To add to the Prime Ministers woes we have European elections tonight, where it is widely expected that the Tory party will be heavily defeated by Nigel Farage’s Brexit Party. Some suggest that May could be waiting for this before she makes the call as to whether to stand down or continue what seems to many to be an impossible fight. And what then? With Boris favoured as her replacement, will we be looking at a harder Brexit deal? Is he even up to the job? Or will we be fast approaching a general election to see Corbyn and a Labour government at the wheel?
With all this uncertainty it is no wonder the Pound has lost around 5% in most cases in the last 3 weeks. And with no certainty on the horizon, this could well continue.
Speak to your broker today- you might like to consider cutting your losses whilst you can, as perhaps the Prime minister considers the same.