Is This The End of The Pound Sterling As We Know It?



Latest news about the recent financial Brexit contributed to the pound Sterling latest dive during the last 24 hours. The British currency has currently hit a new three decade low against the US dollar.
British prime minister Theresa May sent a clear message about the timing of the official Brexit timetable talks. According to her latest speech at the Tories latest annual conference, such talks should begin towards the end of March next year. The UK would be likely to leave the EU around the first quarter of 2019.

In the meantime the Pound Sterling was trading $1 point 2764 in early Tuesday, continuing its downfall from previous trading days. For the record, the last time the Pound Sterling had such a loss towards the US dollar was June 1985. The British currency was also down to 87.51 pence for every euro. This is a three year low against the European currency.

According to one of the most prestigious bankers of Societe General, the reason behind the latest Pound Sterling fall would be due to the fear orchestrated from the British Conservatives. Kit Juckes is of the view that the recent result of the British referendum adopted from the current Conservative Party contributed to the spiralling of the British currency to levels never seen since 1985.

Ms Juckes was quoted by saying: “The British Government plans to use article 50 towards the end of March 2017 was a contributing factor to yesterday’s Pound Sterling fall.Financial experts are now speculating their doubts on whether London would continue to be the influential financial center it used to be. This could trigger consequences that may make things even worst for the UK after the Brexit decision to abandon the Euro.

There is also speculation that the latest British government decision to take a hardline approach on immigrants from non euro zone nations could have a negative impact on the UK economy. This could in fact contribute to the beginning of a so called “Black Economy” where immigrants would agree to work cash in hand in order to keep their immigration status ongoing.

Such employment arrangements could drive the UK economy down even further by putting more pressure to the government current deficit and by driving the UK currency probably below current exchange levels to the US dollar.
Other comments are made today from one of the most influential persons at Phillip Capital UK Ana Thaker. Ana thinks that the UK currency could go as far down as $1.25 within the next few months.

All of the above is happening as the European Central Bank is struggling to keep the remaining EU countries together as they may have to face more financial pain due to their current government deficits. It is certainly going to be a tumultuous end of 2106, the general feeling amongst financial traders is that after Brexit, the European Union and the UK economy will never be the same.




Share Your Thoughts!


XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>