This morning the Pound made back some of the ground it lost over the weekend, taking the GBP/EUR exchange rate back up above 1.12.
At the end of last week Sterling struggled following Theresa May’s party conference speech which was marred with drama, following a prankster and a cold. The Prime Minister is expected to speak later on today and is expected to suggest they can prove the Brexit “doomsayers” wrong.
The fifth round of Brexit negotiations started today and following the comments by the European Commission President Jean-Claude Juncker there could be reason for concern. Mr Juncker suggested there will not be sufficient progress before October unless a miracle happens in the next few weeks. It would appear that both negotiating parties are not as close to one another as they would like. At the end of the previous negotiation talks there has been a joint press conference from David Davis and Michel Barnier, rounding up the week. Depending on the direction of the talks this week there could be a volatile end to the week for Sterling.
Theresa May wards off attacks
The pressure on Theresa May at the end of last week from Former Tory Party Chairman Grant Schapps appears to have lifted off. Mr Schapps suggested he had a list of 30 MPs who wanted to see Theresa May ousted, however when finally asked to deliver this letter it doesn’t appear to have emerged. Speaking on the radio over the weekend Mr Schapps said there were no members of the cabinet on the list and that the 30 would not be enough to trigger a leadership challenge. There needs to be a minimum of 48 MPs in order to trigger a party election. Considering the Conservative party called a general election only a few months ago and now has to focus on Brexit, the distraction of another election would not be wanted by the Prime Minister or the Pound.