As the list of MP’s in the running to replace Theresa May has now been whittled down to two candidates, Boris Johnson and Jeremy Hunt, we look at the potential impact the final result may have on GBP.
The table below is an indicative guide to the type of levels we could experience on the value of GBP. With Boris Johnson still the odds on favourite to be the next PM, the implications on the value of GBP could be dramatic, as he seems to represent a more extreme view surrounding Brexit negotiations, potentially putting pressure on Sterling.
Alternatively, if Jeremy Hunt were to win then he is more likely to seek an extension and push for a softer exit from the EU. The uncertainty of our exit from the EU by the 31st October is also amplified by the potential of another General Election before the end of the year if Boris Johnson becomes PM.
Nobody can be sure what to expect until the new Prime Minister is announced at some point in July.
What we do know is that it is not unreasonable to expect that Sterling will remain volatile as speculation mounts on who will be Theresa May’s successor and what their attitude to Brexit negotiations will be.
As we discussed in our blog earlier this year there are a number of factors to consider when planning your international transfers in an uncertain environment. Importantly, you should look to understand how much risk you can afford to take. To find the right strategy that suits your needs, our experts suggest you could look to work out which of the 3 risk categories you fit into:
During times of uncertainty, you should look to quantify your risks against all possible outcomes, and we can be your eyes and ears in the market, with a range of currency tools to help you monitor market movements.
*Special Notes: The figure is based on the live mid-market rate, correct as of 09.27 on 21/06/2019, and are provided for indicative purposes only. Live mid-market rates are not available to consumers and are for informational purposes only. The rates we quote for money transfer can be selected via the page on our website ‘Live Money Transfer rates’.
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