This week UK Prime Minister Theresa May has been in the spotlight for many reasons. Earlier in the week she announced that the UK will be invoking Article50 and therefore starting the official process of leaving the EU. This caused the markets to get the jitters and the pound crashed against its counterparts.
In the last 24 hours it seems that she may have disagreed with Former Chancellor George Osborne economic plan of ‘balancing the books’ as she has exclaimed the UK need a fresh approach to economic management.
George Osborne’s approach was to make cuts to spending where he could and cut interest rates, which the PM has stated people with assets have got richer from where as people without have suffered. In my opinion this is a major change in sentiment which is a surprise. It feels like she completely disagreed with the Former PM and Chancellor however before she became PM she was happy to sit in the houses of parliament cheering on her former colleagues.
So if May’s new approach is to not worry about the deficit and to spend to improve the economy, the UK will have a larger debt and this could be another argument to why sterling exchange rates have plummeted again this afternoon.
All in all its not looking good for any clients holding onto sterling!
If you are reading this website in order to find out information in regards to buying or selling the pound I can help you achieve the best exchange rates on the market whilst keeping you up to date with economic information. Its important to analyse both currencies that you will be trading therefore I would recommend emailing me with the currency pair (GBPUSD, GBPAUD, GBPCHF etc) the reason for your trade (company invoice, buying a property) and I will email you with my forecast and the process of using our company email@example.com.
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