After a turbulent 44 days, Prime Minister Truss resigned yesterday afternoon, paving the way for yet another UK leader. As mentioned in yesterday’s report her position had become untenable and it was inevitable she would have to resign. The swift move to push her out was faster than some had predicted and shows how keen the Conservatives are to put this behind them.
The leadership process will be fast and could mean we have a fresh PM by Monday. Within the process, there will be an internal vote before the membership vote in which the losers are asked to stand down. This could ensure a quick outcome, helping foster a modicum of stability as sooner rather than later.
The pound reacted positively to the announcement. GBPEUR rose above €1.15 while the cable rate (GBPUSD) edged above $1.13 but could not maintain that level in the face of broad-based dollar strength. As we enter the final trading day of the week, UK retail sales data is set to highlight an eventful day with numerous political soundbites expected.
Have a great weekend.
Written by Viv Savani. 5:52am, October 21st 2022
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