UK Trade figures released
The UK trade figures have come in as better than expected, so why hasn’t Sterling (GBPUSD) moved ? Well the answer lies in a number of places. Had the figures been worse, of course it would have moved down. Many Sterling investors still believe that with Sterling will stay within the EU, even with Mrs May’s universally derided Withdrawal Deal. Actually, we beg to differ. In the recent Local Elections the Labour & Conservative parties both suffered some losses with many, many “spoiled papers”. Turnout was low, but mainly because people didn’t want to vote for one of the two established parties. The European elections are coming up on May 23rd and the newly-formed Brexit Party is going to take significant seats off both the main parties. While this is only the European elections, the Brexit Party is on course to be the largest UK party within the EU, and this might cause the Conservatives to ditch the leader. This is going to turn into a nightmare for the ruling parties and once the uncertainty is eradicated we feel that Sterling should show some benefits, and a close over 1.3180 will confirm this.