The pound has had a quiet week. The vultures appear to be circling above the Westminster prairie, however, and Theresa May is the object of their attention. Conservative backbenchers have been calling on the Prime Minister to quit, and suggesting that there would be a vote of no confidence if one such poll were conducted inter-party.
Mrs May, as I’ve reported previously, is resilient, however, and has waved away her nay-sayers, jetting off to China and pressing flesh with leaders of the world’s biggest economy. The trip appeared to have gone well, and with new trade deals being sought, let’s hope she comes home with something more than a fortune cookie. Having said that, it might be just what she and the country needs.
Whispers from the Chancellor that we’re likely to have a deal with Europe not unlike the one we already have has further unpinned the prospect of a soft Brexit versus the threat of a hard divorce. As we know, this would be catastrophic for sterling so anything other than this will be supportive. We shouldn’t get too excited, but the pound appears to be rigidly range-bound between €1.13 and €1.14.
Brexit gloom is never far away, however, and neither is Westminster-driven uncertainty. Fundamentally the pound is doing OK, but don’t get too excited. Proceed with caution, consider your options, and plan for your transactions. With currency purchases you have various options, some of which you might not be aware of. Get in touch if you’d like to discuss your options.
By Luke Trevail, Senior Currency Trader
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