Political commotion set to continue

The week has begun with the Pound continuing to be on the downside, following the election results last week and new reports suggesting what could be a leadership battle unfolding in the coming months. With Theresa May clinging onto her power following a demoralising result for the Conservative party the next few weeks will determine her next steps.

It shouldn’t come as a surprise that the Pound was the biggest loser again yesterday continually falling against it majors following new reports that the Queen’s speech has been delayed for the first time in history, although not expected to be delayed by more than 7 days, this is not great news as it just further extends this unwelcomed period of uncertainty. The Conservatives will have to work hard and quickly to secure a relationship and negotiate a deal with the DUP party in order to pass legislative programme and form a new government. Until then, the delayed speech, coupled with Brexit negotiations which are now taking centre stage, it is more than likely that these poor rates are only going to continue for the new few months to come.

This morning is a busy one for data with UK Retail Price Index, Producer Price Index and Consumer Price Index all due first thing this morning at 09:30 am, the results could see rate movements but its more than likely that the current political state is what will dominate market movements. At 10:00 am the European and German ZEW Survey is due then this afternoon US Producer Price Index released after lunch at 13:30.

GBP-EUR rates are now at the lowest levels we have seen this year! For those with Sterling in hand and an upcoming requirement, it may be wise to consider booking your currency sooner rather than later. Remove the risk of any further losses and call us today to discuss the various options we provide in order for you to fix your requirement.