Sterling has struggled to find real support against the Euro and Dollar over the last couple of months- it seems that even though the Fed is set to cut interest rates and the EU economy is slowing down- it is still not enough for Sterling to make any real gains against either of these currencies.
This month, the Conservative Party will vote for who they want to be the next PM, and it seems that Boris Johnson will be the clear winner in this vote. The decision will be announced on July 23rd, and we could see the Pound under further pressure once the new PM is announced.
There are some key economic data releases to look out for the UK, the first being GDP figures this Wednesday, and inflation numbers next week. GDP has been low for a long time, and we are expecting a slight growth in these figures, if we do not see this then the Pound could fall further as this will put more pressure on the UK Government, and have an adverse effect on inflation numbers next week.
If you are looking to make a transaction over the coming months, then it is paramount that you have a strategy in place to mitigate your exposure to the market, nobody knows what will happen, however there is always a way to protect yourself against volatility- please don’t hesitate to contact me to find out more about how to plan an FX strategy for your requirements.