Rational Thinking – Hammond Threatens To Quit

Last Week
GBP:

  • GBP falls to two year low
  • Markets nervous about Brexit
  • Prospect of interest rate cut
  • Wait for new PM
  • Both candidates wouldn’t accept Irish backstop
  • Parliament wont allow no-deal by forcing through suspension

This week
GBP:

  • Little data, politics to take centre stage
  • The Conservative Party leadership vote ended on 21 July
  • New PM is expected to be announced on 23 July
  • Boris Johnson is a clear favorite according to polls
  • GBP under pressure, vote of no confidence to complicate matters

EUR:

  • No data releases this week
  • Meeting with ECB
  • Potential rate cut