Given that a large portion of UK exports to Europe go through the French ports, this political play could draw plenty of pressure from UK business leaders who will be keen to protect their competitiveness on the international stage.

Richard Branson said yesterday that we would be forced to move Virgin’s UK base out of Britain in an event of a No-deal, with the potential for unfavourable exchange rates alone making surviving within British shores close to impossible. There could well be more high profile leaders mirroring this sentiment which in turn will add further pressure to the new premiership.

The uncertainty this brings could certainly add volatility to sterling exchange rates. The handling of this kind of scenario is likely to play a pivotal role in the build up to October’s departure date and highlights how difficult the road ahead remains.

Sterling has remained relatively range bound this week against its major currency counterparts, but with key housing data over the weekend and important employment data on Tuesday, this could cause some movement. You may wish to get in touch with your account manager to discuss the options available to you to limit your exposure.

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