In a somewhat surprise move, Prime Minister Theresa May has this morning (Tuesday 18 April) confirmed she wants to hold a snap General Election on 8th of June.
Although Downing Street had initially dismissed any talk of an early election less than a month ago, Mrs May announced she had ‘only recently and reluctantly’ come to this decision as a result of a divided Parliament in Westminster.
In a speech designed to look towards upcoming Brexit negotiations in a positive light, Theresa May said that ‘the country is coming together, but Westminster is not… division in Westminster will risk our ability to make a success of Brexit‘.
On the back of this announcement, Sterling reached a 7-week high against the euro and a 10-week high against the US dollar.
Such positivity against both major currencies has been a rare occurrence for Sterling since the UK’s referendum decision, offering some much-needed relief and positivity for those looking to buy either currencies. However, the UK’s exporters will begin to feel the strain if this Sterling recovery is sustained, as goods become more expensive for overseas buyers and repatriated profits decline.
Political developments have had a significant impact on the pound throughout the start of 2017, forcing SMEs to pay more attention to their foreign exchange practices in order to stay profitable.
The Currencies Direct team will be monitoring the situation carefully to help you react to turbulence in currency markets, stabilise your cash flow and keep costs within budget.
Join Currencies Direct on Tuesday 25th April where they will be hosting a Free Webinar for internationally trading SMEs, and sharing some simple currency hedging strategies that will help you understand how to :
- Protect profits
- Reliably forecast costs
- Stabilise cash flow
The webinar will be hosted by Phil McHugh, Market Strategist at Currencies Direct.