The Pound held pretty steadily last week against the Euro & Dollar through the beginning of last week until the Federal Reserve put up interest rates and traders started selling off the Pound prior to the Conservative Party Conference.
Over the last few months we have seen a significant divide in the Conservative party and a lot of questions about their leadership, which is set to continue- also there has been a pretty negative outlook on the PM since her interview on BBC on Sunday. There have been rumors about some members of the Tory party wanting to remove Theresa May from power, and if these rumors get more steam then the Pound will be affected.
This week the main event will be Theresa May’s speech on Wednesday- the last time we spoke the Pound lost around 2% across the board, and I don’t see her saying anything different this week unless there has been a big change of stance, which is unlikely. To my understanding, Boris Johnson is also set to speak on Tuesday, I am unsure if this will have a major effect, but it does depend on if he gets support or not, so it is worth noting just in case.
Staying on Brexit, later this month there will be an EU Summit held on 18th October, so far both sides are at a stalemate in talks and it will be interesting to see if there is any progression- the consensus is a no deal scenario will mean that the Pound weakens, and if we manage to salvage a deal then the Pound will bounce slightly until the House of Commons vote on it.
October is set to be a volatile month, so if you have a transaction coming up and would like more information on how you can navigate your transaction then please don’t hesitate to contact me.