Sterling hits lowest level since September 2017
The Pound has fallen around 0.5% against the US Dollar this morning after UK Inflation figures released this morning fell below expectations, while political issues continue. With the government’s Brexit strategy appearing to unravel in just a couple of weeks, and the increasing risk that Theresa May could face a leadership challenge, the Pound is under a lot of pressure from the political uncertainty.
May’s Brexit plan narrowly survived a series of votes in Parliament last night, highlighting how May’s efforts to bury party divisions over Brexit have instead inflamed them. The white paper was supposed to be a step forward, setting out plans for the future relationship. But the EU has been unable to engage in discussions due to divisions among the pro- and anti-EU wings of the Tory party, which have led to numerous amendments to the bills.
May faces two major challenges in the months ahead: agree a deal with Brussels and then persuade Parliament to back it. Failure on either of those could result in the UK crashing out of the EU without a deal. The stakes for the May, and the Pound, couldn’t be higher.
Accordingly, we are advising extreme caution for Sterling sellers in the short term. For further insight, please get in touch with Emma Salmon firstname.lastname@example.org 01753752740.