As it happens, Theresa May has opened her first round of question time against Labour leader Jeremy Corbyn, with questions surrounding living costs, inequality and Trident, the UK’s nuclear deterrent programme.
As previous home secretary, May is not new to topics such as immigration and injustice, and confidently addressed Corbyn’s questions without hesitation.
In regards to the UK’s renewal of Trident, yesterday when asked if she would kill 100,000 people with a nuclear bomb if necessary, she responded ‘yes’.
What we have seen of Theresa May so far looks positive for Pound Sterling, she has a clear view and direction for the UK which could be vital when it comes to negotiations with the EU.
Theresa May to meet Angela Merkel and Francois Hollande this week
Theresa May will meet with Angela Merkel today to potentially secure deals with Germany post-Brexit, although it’s unlikely that any deals will be discussed until Article 50 is triggered. This will be May’s first meeting with the German Chancellor as Prime Minister and could be vital in the success of Britain’s withdrawal from the EU.
What comes out of these discussions could be important for Pound Sterling, her handling of post-Brexit negotiations will play an important part in the shaping of Sterling as we head deeper into uncertain territory.
Following on from her meeting with Merkel she will be attending discussions with French Prime Minister Francois Hollande tomorrow, echoing similar discussions with the German Chancellor, as well as the discussions surrounding the attacks in Nice last week.
Pound to Euro forecast – which way will the rates go?
Given Theresa May’s clear direction for the UK, I am confident that she will be able to secure the best deal post-Brexit, even if she does decide to go for the ‘hard’ Brexit option.
Australia have already pledged their support for the UK by offering them a trade agreement, it was also announced over the weekend that 12 other nations are interested in securing deals with the UK.
And with positive inflationary figures released yesterday, it looks as though the UK could be well supported throughout Brexit and I predict Pound to strengthen here onwards.
Thursday’s ECB monetary Policy could hint at how the Eurozone is dealing with post-Brexit shock and if Draghi supports further stimulus of some kind, it could be viewed negatively for the single market.
What’s not clear yet is whether the UK or EU has been hit harder by Brexit, although problems in Italy have surfaced adding further headaches to the conflict.
There are a number of signs that now put Pound Sterling in pole position.