Blog


Sterling will stay under pressure

Sterling gave back early gains against the dollar to trade flat today, back under pressure after British general elections that yielded no clear majority for any party and threatened to undermine Brexit talks later this month.

Prime Minister Theresa May reappointed most of her ministers on Sunday but brought a Brexit campaigner and party rival into government to try to unite her Conservatives after a disastrous election. She is still negotiating for support from Northern Irish Unionists to allow her to stay in power.

It is hard to see sterling performing well over the summer given the possibility that the current state of political uncertainty could last for some time.

It seems fair to say that the consensus view on Friday within the markets was that the practical outcome from the UK general election would be the adoption of a softer negotiating stance by the UK government over Brexit. As a result, there is a view that this would prove mildly supportive for sterling.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and Foreign Currency Exchange Services are provided by Currency Cloud Limited, Equals Money and Ebury Partners UK Limited. Currency Cloud Limited. Registered in England No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money. FCA registration number: 900199. Equals Money is a trading style of FairFX PLC. FairFX PLC is authorised and regulated by the Financial Conduct Authority to provide payment services. (Financial Services Register No: 488396). Currencies 4 You Ltd is partnered with Ebury Parnters UK Limited as its Programme Mananger. Ebury Partners UK Limited are authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. (Reference Number 900797). Ebury Partners UK Ltd is registered with the information commissioners office with registration number: ZA345828. | Terms and Conditions | Privacy Statement | Careers