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Pound Sterling Live (February 15)

2019/ 02/ 17 by jd in Global News

“The British Pound is under pressure ahead of the weekend, holding the title of the worst-performing major G10 currency over the course of the past five trading days. Losses come as the government suffered a symbolic defeat…with pro-Brexit MPs voting against a motion tabled by the government.”

 

Reuters (January 16)

2019/ 01/ 17 by jd in Global News

“Nobody expected May’s Brexit deal to secure a majority. Nevertheless, the scale of the defeat—the worst for a British government in modern history—was startling…. It’s very unlikely the deal can be rescued.” In fact, investors seem to be signaling that “reversing the Brexit decision” is now more likely than “a chaotic exit…. The pound jumped 1.4 percent against the U.S. dollar immediately after the result was announced on Tuesday.”

 

Reuters (November 1)

2018/ 11/ 02 by jd in Global News

Expect some Brexit volatility for the pound. “With less than five months until the marriage is due to end, the two sides have yet to finalise a divorce settlement and if none is made by the end of March,” the current consensus is that “sterling will fall to $1.20.” The same poll of economists predicted “the pound would bounce to $1.35 if a deal is made.”

 

Reuters (August 9)

2018/ 08/ 10 by jd in Global News

“The last thing the Bank of England wants right now, one suspects, is a precipitous fall in the value of the pound. Yet with the worst Brexit fears intensifying, that’s exactly what it may have to brace for.”

 

The Times (January 11)

2018/ 01/ 12 by jd in Global News

Driven by the cheap pound, UK factory growth hit a seven-year high. “Factories are growing at the fastest pace in almost seven years after a solid three months to November that beat all forecasts and put Britain on track to start 2018 on a firm footing.” Still, the manufacturing sector “accounts for only a tenth of output in Britain, with four fifths generated by services.”

 

The Economist (November 5)

2016/ 11/ 07 by jd in Global News

“It is rare for a court judgment to cause turmoil in the foreign-currency markets. Yet the pound soared on the morning of November 3rd after the High Court in London ruled that only Parliament has the authority to trigger Article 50 of the European Union treaty, the legal route for Britain to leave the EU.” The decision ignited market hopes “that Parliament might choose to block Brexit altogether or, perhaps more plausibly, that it will attach conditions,” increasing the likelihood of a “soft” Brexit.

 

Wall Street Journal (July 28)

2016/ 07/ 29 by jd in Global News

“Since the 15th century the world has had six unofficial reserve currencies, starting with the Portuguese real. On average they have maintained their leading position for 94 years. The dollar succeeded the British pound 96 years ago, and it has no serious rival in sight.” Today, nearly 90% of global trades involve dollars and, worldwide, nearly two thirds of foreign currency reserves are held in dollars.

 

The Economist (July 2)

2016/ 07/ 03 by jd in Global News

“It is now a week since voters narrowly opted for Brexit, and the country has seldom looked so wildly off the rails. The prime minister has handed in his notice. The leader of the opposition is struggling to survive a coup. The pound hit a 31-year low against the dollar and banks lost a third of their value, before stabilising. Meanwhile there is talk in Scotland and Northern Ireland of secession.”

 

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