Not so strong and stable it seems. Unless you’ve been in a cave for the past 24 hours we have a hung Parliament in the UK. What does it mean? More confusion and more uncertainty. Will Theresa May resign? Will Jeremy Corbyn form a minority Government? What deals are being done in Westminster between the Parties?
One thing is certain. Sterling has been sold off aggressively overnight. Will the move lower continue in the coming weeks? We have been Sterling negative for a while and can only see downside risk over the summer months.
You can view the overnight moves on Sterling/Dollar and Sterling/Euro on the graphs below –
Once the dust settles today we will have a detailed report over to you on Monday.
If you have any currency requirements please get in touch to discuss a strategy for the coming months.
Have a great weekend