More Ministers Resign
11 July, 2018
This week we have gone from cheering in a Swedish furniture store to seeing our cabinet collapse. Yesterday 2 more ministers resigned from their positions leaving Theresa under further pressure. Her recent PMQs performance to be judged as her least convincing yet, with Mrs May for the first time showing the signs of pressure, at this stage the last thing she needs is a leadership challenge. With Boris Johnson’s resignation being a real cause for concern as he currently looks like the one who could potentially challenge her position. Let us hope the only Split we see today remains in Croatia and that Sterling finds its feet and poses a challenge to its major pairings.
As always uncertainty is the currency markets’ worst enemy. With investors being put off with no clear indication if they will be getting a positive return on their investments. Should there be a leadership challenge and further a snap election, we could end up around the 1.05 region against the Euro and low 1.20s against the USD. Have you got the additional funds available to cover for the worst case scenario? If not, why not take advantage of our forward buying options and take the risk out of your overseas purchase.
To add further turmoil to GBP yesterdays only data of note, Manufacturing Production, came in 0.6% below expectation. Today is the busier day, particularly for anyone looking to buy CAD, with the BOC monetary policy taking place at 3 pm, if you want to avoid any risk get your CAD early doors. This is followed by Carney speaking at 4.30, his views will be closely monitored as his comments could direct Sterling’s fortunes as the UK markets come to a close.