Another UK Prime Minister gone... Time for Rishi Sunak?

Well, it really happened. PM Liz Truss resigned from her post on Thursday after an astonishing 4 weeks on the job, it was clear that the markets were happy with this outcome with Sterling actually rising following the resignation on Thursday, and staying higher through Friday.

So what happens next? Tory MP's who wish to throw their hat into the ring have to gain support from at least 100 MPs by Monday- Rishi Sunak has already crossed that barrier, Penny Mordaunt has also announced her bid. Typically, if only one MP has over the 100 thresholds then they could be announced PM tomorrow, but if there is more than one, it will be taken to the members of the Tory party to vote on again.

So as the UK watches while a new Prime Minister is potentially picked, we will have the small matter of rising inflation in the UK, and with the Bank of England set to raise interest rates again in the first week of November, Traditionally, this would be good for the Pound, but given the recession warnings and mortgage issues in the UK right now, another rate hike could be a big problem for borrowers in the UK.

As it is the last week of the month, there are not many data releases, so politics will (as usual) take center stage this week. If you have any upcoming transactions you wish to discuss please don't hesitate to contact me.