The 11-Month Low for the Pound
Author(s): Scott Douglas Jacobsen
Publication (Outlet/Website): Medium (Personal)
Publication Date (yyyy/mm/dd): 2018/08/07
The UK Pound has gone down to its 11-month low, recently. This is according to the UK International Trade Secretary Liam Fox, who stated that the pound is falling.
The risk of a no-Brexit deal is, now, 60%. This is a dip of the pound against the dollar: “Sterling is down 0.4% against the dollar to $1.2963 at 10.30 a.m.
Following this, it went to its lowest point since the prior September. This statement by Fox about the increased, greatly so, probability of no deal for Brexit led to the decrease in the current, of the Pound.
The idea of a no-Brexit deal is a Britain leaving the EU without any deal on the future trading arrangements. It went from 1/2 to 6/10 in probably, a jump of 10%.
As reported, “Fox is a Brexit supporter and was one of three cabinet appointments made by UK Prime Minister Theresa May to appease that faction of the Tory Party.”
Now, he made some comments to the effect that warning of Mark Carney, the governor of the Bank of England, made the odds uncomfortably high. It sent the pound in a nose-dive or spiral downward.
March, 2019, is the deadline for the deal with Brexit in the UK. However, there has been almost no progress in coming to a conclusion on the applicability of the deals.
The nature of the trading partnership between the EU and Britain remains uncertain, and uncomfortably so, too. This
Throughout Europe, the stock and currency markets have been on the down because of bad data from Germany as well, Germany orders to its factories declined by about 4%.
The deteriorating relationship, via trade, between the US and the EU has not helped the situation overall, either.
The article concluded, “Elsewhere, accountant BDO released a survey on Monday saying that the UK service sector has shrunk for the first time since 2010. The sector covers everything from consultancy to waiting tables and accounts for 80% of UK GDP.”
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