There have been several important political developments over the last 24 hours which have begun to impact Sterling in a big way.

British PM, Theresa May has confirmed that she will announce her timetable for her departure as PM in June, whether she is able to deliver Brexit or not. MP’s such as Boris Johnson have already announced that they will be looking to run in the imminent leadership elections (Expected Summer 2019) after the PM’s resignation.

As we have been in this situation before, it is clear from previous patterns and logic that with the British PM resigning and a new leader to be put in place there is a lot of uncertainty expected for the Pound, and the likelihood of the Brexit deadline being extended again is high as a new leader will demand time to put a new strategy in place.

So far over the last 2 weeks, we have seen GBPEUR drop from 1.18 down to 1.14 and GBPUSD go from 1.3160 down to 1.2790.

The European elections are also expected to take place at the end of next week, and the Brexit party led by Nigel Farage are expected to have success in this, which should also put the Pound under pressure,

If you have payments to make over the next 6 months, please don’t hesitate to contact us to learn more about the financial tools we have such as forward contracts and market orders to protect you from the imminent market volatility and ensure any risk to your bottom line is mitigated.