- May assures ‘Brexit means Brexit’
- New cabinet confirmed including Boris Johnson
- New cabinet mixture of Brexit and remain supporter
- Newly appointment Chancellor Philip Hammond to push for Hard-Brexit
- BoE Interest rate decision
What next for Pound Sterling?
As we watched political leaders, cabinet members and Prime Minister candidates drop like flies, we were left confounded in the wake of a Brexit victory. Whilst the news did something drastic to the value of Sterling, there does appear to be some ray of hope at the end of this rather obscure tunnel.
Theresa May was the last (wo)man standing, it felt almost like a fight to the death with Michael Gove stabbing Boris Johnson in the back, but as karma has a way of doing, Gove has been sacked from his position as Justice secretary under May’s new team.
As the world woke up to the news that Boris Johnson will be taking the position as foreign secretary, Pound Sterling slumped. Johnson has made a number of controversial comments about world leaders in the past including Barack Obama, and the news would be seen by some as an embarrassment to Theresa May’s first day as leader.
But the strongest clues yet of what action the UK will take have come from Philip Hammond, who told LBC radio that the UK will come out of the single market once Article 50 is invoked.
But there remains a number of challenges ahead, we are yet to see the full impact of Brexit on the economy and today’s BoE Interest Rate decision may be the first steps towards economic aid.
Bank of England’s Interest Rate decision
Mark Carney of the Bank of England has hinted at further stimulus and Interest rate cuts in attempts to curb the impact of Brexit, today could be the first steps taken. Although it’s likely the markets have priced in a rate cut, further Sterling weakness could be on the horizon today.
That being said, current GBPEUR exchange rates are still favourable at 1.19, the 10-year average sits at 1.25 and with the potential for further movements ahead, making the most of current rates could be a good option.
BREAKING NEWS – The BoE have kept rates unchanged pushing GBPEUR exchange rates back into the 1.20’s.