The pound is choppy this morning as the markets await the announcement of the new Prime Minister at 11:45 this morning. It is widely expected to be Boris Johnson, so we can expect a certain level of pricing in, but a lot will hinge on Johnson’s own remarks, including to the 1922 Committee, after the announcement – and on further reports of resignations.
The euro is also choppy, with a busy day for economic releases ahead, including consumer confidence, German inflation, and economic sentiment. Any statement from the new British PM on Brexit will also have an impact.
The dollar is benefitting from the pound’s weakness and a rise in treasury yields. The markets are looking forwards to the GDP data release on Friday, which could hint at the direction of a rate cut.
There’s a lot of unpredictability on the horizon, but it’s not too late to protect your money. Simply secure a fixed exchange rate with a forward contract. Speak to your Personal Trader on 020 7898 0541 now.
