Sterling logged in yet another losing week as Brexit concerns returned to the forefront. What’s in the cards for this week?
With no major U.K. economic reports on this week’s schedule, the focus would likely be fixed on Brexit developments, including possible plot twists.
First off, the winner of the Prime Minister race will be officially announced on July 23, although it’s most likely in the bag for former London mayor Boris Johnson.
It’s not all rainbows and butterflies from here, though. In fact, tensions were already brewing last week as there has been talk of possibly suspending Parliament. MPs were quick to act, with a majority of 41 approving an amendment to block a suspension.
Recall that Johnson has stated that he won’t rule out a “no deal” Brexit by October 31, so many are worried that this new leadership might not be much different from former PM May’s. It’s no surprise that there are still plenty of threats of resignation among senior officials because of this!
More signs of discord would likely drag pound pairs much lower in the days ahead, especially if the leadership change proves to deepen the division within the Conservative party and prevent them Parliament from agreeing on a transition deal.
Missed last week’s price action? Read GBP’s price recap for July 15-19!