Last night Conservative MPs voted for the third time on who they want to be the next Prime Minister. No surprises Boris Johnson won the highest number of votes with 143 votes, followed by Jeremy hunt with 54 votes. The shock announcement was that after appearing to gain support in previous days, Rory Stewart was eliminated with only 27 votes.

Currency Pair% Change (Month)Difference on £200,000
GBPEUR2.07%€4,780
GBPUSD2.51%$6,520
GBPAUD2.58%AUD $9,460

Today Tory MPs will vote twice on who they want to be the next Prime Minister, once this morning and then this afternoon. It appears that Boris Johnson will make the final two and we are awaiting on who will challenge him to No10. Once we have the final two candidates, the 160,000 Tory members will then get the deciding vote on who they want to be the next PM and the announcement will be on the 22nd July.

At present it appears that Boris Johnson will be the next Prime Minister. His approach will be extremely different to Theresa May’s as he has made it clear leaving the EU without a deal wouldn’t be a problem, even though in the last 7 days he has stated that a deal is the best option. The closer we get to October without a deal in place this could put further pressure on the pound making purchasing foreign currency more expensive.

Will the Bank of England keep Interest Rates on hold?

Bank of England to take centre stage

Today the Monetary policy Committee which is made up of 9 voting members are set to release their latest interest rate decision. Interest rates are set to remain on hold at 0.75% with all 9 members voting to keep the base rate on hold. If this materialises, the decision itself may be a non-event, however Governor of the Bank of England Mark Carney’s speech shortly after should provide a period of volatile trading for the pound. Due to GDP falling to -0.4% for April this event may put further pressure on the pound.

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