PM remains defiant
9 May, 2019
Yesterday, during PMQs the PM remained defiant and rejected calls for to resign. The pressure has been building on the PM as it seems more and more MPs are losing confidence in the PM and doubts increasing that she is the right person to lead the UK through Brexit. In fact, Local Tory associations confirming a motion of no confidence will take place on the 15th of June, this isn’t legally binding, but should the motion pass, there will be further pressure on the PM.
The 1922 committee, met the PM at 4 pm yesterday, asking for more clarity on her departure date. The PM has previously stated she will resign once the first stage of Brexit has been passed, however that is now not seen as good enough. The discussions of the meeting haven’t been disclosed as yet, but any negative news will surely see the Pound plummet, having already lost over a cent since Friday’s hike. With no immediate upside, we could be at the top off the range currently. Please stay in touch with your account manager to be kept up to date. To avoid missing future opportunities when the rate seems to jump, why not place a limit order to ensure your currency is bought at those rates.
The USDGBP rate has been on a steady decline too, with the Pound weakness it has seen it drop across the board. With the cross-party talks close to collapse, seeing the rates drop further isn’t out of the equation, if your need is further down the road but you don’t want to gamble further, our forward contracts will help negate risk should the rates drop.
Data wise today is another quiet day, seeing Fed Chair Powell speaking at 12.30 as well US PPI.