Political uncertainty to undermine Sterling
In the UK, the Prime Minister, Theresa May, is facing a week in which former members of her administration have resigned and as is customary, will make statements in the Commons. These are likely to be highly damaging to her, and the Conservative Party is already suffering humiliation in the polls, and the terrifying prospect of becoming a fringe party at the next elections The UK Government’s response to this crisis is to table a motion for a vote on the crucially important matter of starting its summer holidays early, presumably in a bid to hide from its own MPs in the hope that the widespread anger subsides. It’s difficult to see how this helps the UK either economically or politically. The problems surrounding Brexit are complex enough, but trying to perpetrate a de facto fraud on the electorate and then hiding behind the curtains seems spectacularly insane. A challenge to the Prime Minister is inevitable and until that matter is resolved Sterling isn’t investable in our opinion, and we would look to sell any rallies.