Muted day on the markets – Pound dropping

Yesterday was a muted day on the markets, with no data out with everyone seemingly waiting for Thursday’s elections. With all predictions seeing a heavy defeat for the Tories and Labour party, putting further pressure on the PM and the leader of the opposition. A heavy defeat will certainly mean any hope that Mrs May has of getting her deal through parliament are non-existent. Should the results be as the polls suggest, we could see the rates drop further, already at a four-month low and with further downwards movement possible, are you in a position to gamble and see your budget being eaten away? Can you still afford to cover to pay for your overseas purchase, if not, why not our forward contract to mitigate your risk and secure the rates before they drop further?

The PM is due to address parliament later, expected to outline her ‘bold’ new offers and outline her ‘new and improved deal’, in a possible last-ditch attempt to get her deal through parliament. all signs pointing towards three figure defeat, will see another record defeat for the PM following her loss at her previous attempts?

All in all, it is not looking very good for the Pound, with predictions suggesting we could see the rates drop another 5% from where we are now across the major pairings. To be kept up to date, stay in touch with your currency broker.