Following the drama of Boris Johnson taking over as Prime Minister and appointing the arch-Brexiteer Dominic Cummings to plan the UK’s exit, it’s all gone a bit quiet in the news. Most politicians are away, as are their EU counterparts, and what are left in the UK are busily preparing for a general election that everyone expects before Christmas. There has been a huge increase in Facebook ads from the main parties, apparently. No, me neither.
The news is full of rumour and speculation. Silly season is finally here, with ideas about a national unity government featuring, I kid you not, all “Remainer” (including Labour Party) politicians lining up behind John Major as caretaker PM. Or even a cabinet made up entirely of women, which is the Green Party’s idea. More seriously, House of Commons speaker John Bercow has vowed to prevent an engineered no-deal departure from Johnson/Cummings. So we are gearing up for the mother of all battles when parliament returns in three weeks.
In the meantime, we have only the potential global recession and trade wars to worry us. The slowdown in the world economy is having a chilling effect on all currencies, perhaps hiding business fears over a no-deal Brexit.
Having never been in a boat in a hurricane, this is pure speculation, but I imagine that the peacefulness at the eye of the storm is a time to feverishly run round and ensure the hatches are still all battened down. In currency terms, for anyone with a major transaction in the offing the safest option is undoubtedly to take out a Forward Contract.
Do talk to your trader on 020 7898 0541 to talk through your options.
