Trick or Treat
6 June, 2019
As the Brexit deadline approaches it looks like the promises of a new Brexit deal could be misleading. According to Rory Stewart, a Tory leadership candidate, there is “not a hope” of a new plan by the Halloween deadline.
His comments followed criticism from Boris Johnson that the Conservatives face “potential extinction” if the UK doesn’t deliver a deal to leave the EU by 31st October.
Brexit has divided the conservative party and we are now in a situation where not all the Tory candidates agree on Brexit which bodes for very uncertain times as we approach the deadline next week for nominations to replace May as Prime Minister. We don’t know who will replace her nor what their vision for Brexit is and with such uncertain times, we have seen many investors shy away from the GBP as a safe haven leading to a weaker GBP over the past few weeks.
President Trump’s visit to the UK has caused some controversy, with strong protestors taking to the streets of London. However, his visit has provided some relief to the UK economy after he announced yesterday that the US is ready to clinch a trade deal with the UK post-Brexit. Optimism over these post-trade relations gave the GBP a boost, along with better than expected UK services PMI for May.
The USD is up against most major rivals following a better than expected Non-Manufacturing PMI and it is widely believed a deal with Mexico to avoid tariffs could be announced tomorrow.
So whilst the future still looks uncertain speak to your CI broker today to understand how to mitigate your risks