The pound is choppy this morning as rumours grow of a resignation date announcement from Theresa May later today, or, at the latest, by Monday. This only adds to the market uncertainty accompanying Brexit and the current European elections, as a leadership change could indicate a change in policy direction on Brexit.
Poor economic data from the Eurozone didn’t do the single currency any favours, but it is still up against sterling. The ECB’s monthly meeting notes from yesterday confirmed that interest rates would be held as they are, amid concerns around a growth rate that is slower than expected.
The dollar has weakened this morning as expectations arise that the Federal Reserve will have to cut interest rates to support the economy. Trump seems to have offered a carrot in US-China trade negotiations, saying that Huawei could be included – but this may not be popular among the public.
There is a lot of uncertainty impacting the markets now, and this is only set to continue – so lock in a fixed exchange rate and take away that risk with a forward contract. Call your Personal Trader on 020 7898 0541 to find out more.
