Hands up anyone who, based on last night’s leaders debate, changed their minds over who they would vote for in the General election. Anyone…….anyone…..? Of course not. This confrontational X-Factor style politics is such tosh. The markets certainly weren’t swayed in either direction. Sterling lost a little ground yesterday but has stayed in the midst of its recent ranges.
It is rare for a prospective Prime Minister to openly tell business leaders they will be worse off if he is elected but that is what Boris Johnson did yesterday at the Confederation of British Industry (CBI) Annual Conference. His withdrawal of a prospective corporation tax cut and the use of those funds for NHS projects was a surprise to those present. Interestingly, his approval rating rose on the announcement and the Conservative Party’s lead grew through the day. As that happened, Sterling also gained ground
It is almost not worth commenting on the UK elections; all the parties are spewing spending plans; none of which are truly credible but we all nod and smile. You could describe the policies of the three main parties as ‘In’ (LibDem) ‘Out’ (Tory) and ‘shake it all about’ (Labour). The Hokey-cokey election has started.
It’s a bit like that old saying about buses… you know; they all come at once. Well, we have a perfect storm of economic, political and geopolitical pressures moving the currency markets, so hold on to your hats! While you’re holding on to your headgear, it’s a good idea to speak to your Currency Consultant, too, to help you with any big currency plans you have for this week and the volatile weeks ahead.