The Pound has slumped over the past 48 hours and traded at its lowest levels against the Dollar and Euro since mid-February. The weakness in the currency has come from reports that Theresa May is being forced to commit to a date for her departure or one will be set for her. The markets are concerned that her replacement will more likely be a hard ‘Brexiteer’ with the bookies putting Boris Johnson as the odds-on favourite to replace Theresa May as PM.
The Pound looks vulnerable in the coming weeks.
The Euro has clawed back some of its losses from earlier in the week after the EU economy grew at a faster rate than forecast according to the preliminary readings. The focus today for the single currency will be the host of European central bankers speaking and any mention of future plans for monetary policy easing.
On the Dollar front, trade tariffs and US policy on trade are still the main driver of direction for the greenback. President Trump has delayed auto tariffs for up to 6 months, helping European manufactures back to their feet.
The president also signed a bill to ban certain telecoms firms operating in the US citing security concerns. This has seen telecoms firms like Huawei see sharp declines in their share prices. The trade concerns are certainly impacting consumer behaviour which was proven by the poor Retail sales number out yesterday, with sales declining by 0.2% in the period.
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