The President of the United States arrived in the UK yesterday to meet with Theresa May and spend some time at his private residences in Scotland. This is seen as a particularly important meeting as Theresa May battles with her Government over the Brexit negotiations. The below report looks into the potential outcomes of this meeting and how it could impact the Pound in the midst of Brexit negotiations. The table below shows the change for a number of currency pairs during the last month, and the potential returns you could have achieved at the high and low points when selling £200,000.00.
|Currency Pair||% Change||Difference on £200,000|
The President of the United States arrived in the UK yesterday to meet with Theresa May and spend some time at his private residences in Scotland.
This is seen as a particularly important meeting as Theresa May battles with her Government over the Brexit negotiations.
Mrs May would no doubt give all the money in the world for Trump to simply say the UK are at the front of the queue and provide his unequivocal support. This would also provide a significant boost for Sterling and maybe help the currency reach month highs.
The Sun newspaper however have this morning released an interview from Trump which has put a huge spanner amongst the works. Trump has said he gave instructions for Theresa May for Brexit and she’s ignored him, followed by suggesting a softer Brexit deal means the UK & US won’t have a private trade deal as the UK will be part of the EU still. Furthermore, if that wasn’t enough to make lunch today awkward he suggested Boris Johnson would make a great Prime Minister only a few days after he resigned from Government.
Trump is set to be met by 50,000 protesters today along with a 20ft high balloon of himself as a baby. The President was asked about this at a NATO Q&A session yesterday where he suggested he’s loved by many in the UK.
He pointed out that many agree with him on immigration and that’s the main reason the UK voted leave. Either way no matter what you believe Trump's visit brings great interest at a time of uncertainty and there could be market movements following a statement from either leader.
Sterling this week against the Euro and US Dollar has stayed fairly flat with little movement outside of 1% from the high and the low. This has come despite a volatile week for UK Politics with Cabinet members resigning following a movement from Theresa May for a softer Brexit. The next week could be the most significant in May’s tenure so far after the Chequers 98-page white paper was published yesterday.
The blueprint from May suggested the UK would be much tighter interlinked with the EU than many had anticipated but does present a significantly more focused business environment in which there would be little disruption to trade. However the white paper does fail to cover how professional services will work moving forward which represents 80% of UK GDP.
Next week Theresa May will be waiting for the drama of Donald Trump's visit to fall away and get back to the Brexit focus. Should her new plan receive support I think we may start to see some value for Sterling re-appear as the softer Brexit approach becomes more of a reality.
Keeping in touch with your broker at the moment is vital to making sure you trade at the right time for you.