The Pound is set for a fairly volatile trading day again today, with politics being firmly in focus over the course of the day.
The latest Chancellor Jeremy Hunt is due to release an emergency statement on the mini budget at roughly 11am today, which may involve further U-turns, tax hikes and changes to the plans laid out by Kwasi Kwarteng merely a few weeks ago.
That mini-budget sent the markets into turmoil and dented the pounds value significantly, his exit and a U-turn recently have given the pound a bounce back.
All eyes and ears will be on Hunt’s statement, and depending on the contents and messaging it is likely investors and speculators will be ready to move so the pound could see some swift volatility just before, during and after the statement.
Economic stability and political certainty are two of the key components of the value of a currency, and it is pretty fair to say both have been pretty tragic for the UK in recent weeks.
Today will no doubt be key for both where the pound heads next but also for Prime Minister Liz Truss, it looks on the face of it that she is clinging on to power however most of the press have expectations that it will be unlikely she survives past the end of the year.
Clearly, another change at the top would lead to further uncertainty, so it is key that the messaging today lands right. There is a huge black hole in the UK economy and questions need to be answered to settle the markets, Hunt is seen as a safer pair of hands, so should he put together a statement and plan that is taken well by investors and speculators then the Pound could have a really good day.
On the contrary, another poor day for the Conservative party and not only could it be curtains for the Prime Minister, but it could also be a challenging day for Sterling exchange rates too.
Jeremy Hunt speaks in the commons mid afternoon and will also face questions on his plans, so we have plenty of opportunities for pound sterling volatility today.
If you have a currency transfer coming up involving buying or selling the pound, and you would like our assistance, then we can help in terms of rates and also being your eyes and ears on the market.
Feel free to email me directly on [email protected] and I will be happy to get back to you to discuss your transaction personally.