Brexit was back with a bang this week, but then, did it ever go away?
It was at the centre of many Tory party leadership hopefuls’ manifestos, with the first round of votes cutting away three candidates vying to replace Theresa May as Prime Minister. Andrea Leadsom, Esther McVey and Mark Harper were all eliminated, with seven progressing to next week’s round of voting.
While the pound is likely to remain volatile until a clearer picture emerges on the UK’s new leader and their stance on Brexit, it did pick up a boost from former Foreign Secretary Boris Johnson winning the first round by a clear mile – overwhelming his rivals with 114 votes. Sterling rose against the US Dollar and the euro as markets saw a brief glimmer of a potential end to Brexit in sight.
With Boris Johnson so far out in front, he potentially offers a level of certainty to investors. He has also stated that he is “not aiming for a no-deal outcome”, and the UK will be leaving 31st October, “deal or no deal.” Subsequent ballots are expected to take place on 18th, 19th and 20th June next week to whittle the PM hopefuls down to just two before putting the vote to the wider Conservative Party members.
Call moneycorp on +44 (0)20 3773 6355 for more information or to discuss your currency transfer requirements. Receive free transfers on all your payments.