Prime Minister Theresa May answered questions during a live Facebook stream, which was met with some backlash from angry voters who criticized her decision to cut disability benefits. Research suggests that this year's General Elections is less about Brexit, and more about who will manage the economy better during such uncertain times for the UK. The below table indicates exchange rate movements for a number of currencies paired with Sterling.
|Currency Pair||% Change||Difference on £200,000|
Yesterday, Theresa May faced a series of questions live over Facebook. In what was a quiet day yesterday for the UK in terms of economic data, politically there was plenty to discuss. Theresa may was confronted by an angry voter yesterday, over her decision to cut disability benefits, whilst both Jeremy Corbyn, leader of the Labour Party and Theresa May tried to win over the working class with new policies and both pledged further spending in the Nation Health Service.
What is worth noting is that recent research suggests that voters in the general election are not considering their votes with Brexit. The most important question surrounding the general election according to yesterday’s research is who will be able to manage the economy properly, and on the other end of the spectrum – controlling immigration, was the least important aspect when choosing who to vote for. At the time of writing this report, the polls had the Conservatives ahead by nearly 20 points. The recent storm by leader Theresa May could start to feed into investor confidence soon in my opinion. As political uncertainty is one of the key drivers for market volatility, the more certain it becomes that she will win the General Election, the more I would expect the pound to strengthen in both the short and medium term. However, as recent events, especially political events where the British public are involved have shown us, it is well worth being in contact with your personal trader to keep you informed of events as they unfold.
Although yesterday was a quiet day economically, the rest of the week is quite a contrast. Clients should be aware that the latest inflation data (today), labour market (tomorrow) and consumer data (Thursday) are all set to be released. Any clients looking at capitalising on a short term spike should be keeping an eye of these economic events. Inflation is expected to jump from 2.3% to 2.6% as the UK keeps moving towards it target of 3% set by the Bank of England. This could provide a short term spike in strength for the pound. However, I personally believe that the Labour market report on Wednesday will carry more significance this week. As wage growth has been in the news last week, if inflation is rising in the UK and wages and unemployment are stagnant, this simply means that the consumer will have less money to spend whilst the cost of living increases and gives the Bank of England the not so easy task of setting interest rates.
With such a busy week economically, I would suggest anyone with an imminent to midterm trade to get in touch with their broker to understand how this week could shape their trade. Call us on 01494 725353 or email me here to learn more.
The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.
First class foreign currency provider, great rates and outstanding customer service.
Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.
It was really refreshing to go through a process that had absolutely no hiccups at all, the service that we were offered exceeded our expectations. We would unreservedly recommend the company to anyone seeking to exchange currency.
Very efficient service. I’ve never used a service like this before & was purchasing a house in France. It was all explained very well & I was kept informed all along the process. Putting a deposit down to pre-book the rate also saved us a fortune.