The pound has started off the week on the front foot against all major currencies, following another weekend of political twists and turns for the UK.
As we headed towards the end of an eventful week, news broke that ex Prime Minister Boris Johnson was heading back from a Caribbean holiday to have a crack at regaining his position at number 10, something that seemed a million miles away only a few weeks ago.
As most readers will know, the UK is full of surprises at the moment and this news gave the pound a slight wobble as further uncertainty was cast over where the UK would head next, and with expectations of a completely broken Conservative Government should Boris get back in, the outlook led to investors and speculators shying away from the already damaged pound.
Fast-forward a few days and we have had a lot of further change, Boris has pulled out, Penny Mordaunt is struggling for numbers and there is every chance that by this evening we will have a new Prime Minister – Rishi Sunak.
Currently he is odds of 1-50 with Skybet, so it appears ever likely we will have a winner by the end of the day, and this has actually given the pound a decent boost over the days trading.
Sterling is the best performing major currency of the day at the time of writing, and it appears that Rishi Sunak is deemed as a safer pair of hands, and someone that can start to guide the U.K out of these seeming murky waters.
What this does bring are further unknowns, what will new PM Sunak have planned, how will he approach the cost of living crisis, will we have another change to taxes? All of the above present an interesting few weeks ahead again for the pound and how it is seen by investors and speculators alike.
What is for sure, is Sunak cannot afford to have a Kwasi Kwarteng moment, which spooked investors and shot the pound down significantly in a short space of time, his plans need to be thought out, well delivered and to be run past the office for budget responsibility before thrown into the spotlight.
Expectations are that the pound could have an interesting week once again this week, depending on how this all plays out, it is clear that investors seem to back Rishi so a strengthening on the pound over the week could continue once there is clarity he has won the contest, but lets be clear he has one hell of a huge job on his hands, and all eyes will be on his every move and hanging off his every word as to what the plans are both now and in the future.
If you want to be kept up to date with the very latest market movements, or should you have a pending currency exchange to make and you want to discuss your options or to get a comparative quote then feel free to email me on [email protected] and I will be happy to have a chat with you personally.