PM May To Step Down, What Now For The Pound?

[Jon Steeler]

[Guest Sam Bouman]

So with Theresa May announcing she will be stepping down as PM on the 7th of June we now have to ask ourselves whats next in terms of the possible new leadership and Brexit and how will this affect the UK economy and mainly for us, the pound.

So there will now be a process whereby the conservative party will go through votes in order to appoint their new leader, this however can be time consuming although we have to note that the party committee has come out and said that they would like the new leader to be appointed before the party recess in early July. 

Regardless of who is appointed they will still struggle with the same hurdles as PM May did as there is no overall majority for any type of Brexit in parliament which to me says we should have a longer term short bias.

However in the meantime due to the fact that there has been a step forward in the process it will give some time (albeit very short) for people to take a rest from Brexit which means we could see some upside in the near term.