The pound is down against the euro and dollar this morning, after a choppy week last week. This week will be a quiet one for economic releases, although we will see industrial trends on Tuesdays, which are expected to have picked up, albeit still remaining in the negatives.
Most of the influence on the pound, then, is expected to come from external political factors. Jeremy Corbyn, on a visit to Northamptonshire today, will claim that there must be a ‘once-in-a-generation chance for a change of direction’ through a General Election, which he hopes to trigger with a no-confidence vote. The Conservative Party’s chairman James Cleverly has responded that Labour is just causing more ‘dither and delay’, with a ‘cynical attempt to seize power.’
Later this week, the markets will be watching closely Boris Johnson’s first visits to France and Germany as Prime Minister, where he will meet with Macron and Merkel. Although talks are theoretically more focused on the upcoming G7 summit, it would be surprising not to hear any further comment on Brexit.
