Sterling is in positive territory against both the dollar and the euro this morning, but remains choppy. Despite benefitting from the weakness of the greenback and the single currency, the pound remains at the mercy of Brexit uncertainty and the increasing possibility of a no-deal scenario.
At the end of last week, the pound hit a near five-month low as Brexit uncertainty continued. Philip Hammond warned his fellow party members that a no-deal Brexit would endanger the economy, whilst Boris Johnson received praise from Donald Trump, currently on a state visit to the UK, over his stance on Brexit.
There were also reports that the European Union will not negotiate a new Brexit deal with the new Prime Minister. However, Ireland’s foreign minister said that there is “scope for new thinking.”
A 13th candidate for the Conservative Party leadership bid has joined the running. Sam Gyimah, MP for East Surrey and former universities minister, backs a second referendum on Brexit. He is the only candidate so far to be an advocate of this, and has said that he would legislate a ballot paper with the options of no-deal, Theresa May’s deal or remain.
