Pound Falls Ahead Of Theresa May Brexit Speech

[mikey4444]

http://www.bbc.co.uk/news/business-38632140

And she hasn't even opened her mouth yet !

What an asset Mrs May is to Britain....the cause of a 20% drop in the value of Sterling.

[mushroom25]

//Northern Ireland voted 56% to Remain in the EU. Northern Ireland politicians will not be supportive of Mays plans, whatever they are. //

if northern Ireland want to stay in the EU, they can always cede to the republic. what would Ian Paisley have had to say about that?

[Gromit]

^ Not a lot. He has been dead for 2 years.

[mushroom25]

I phrased my question to have been interpreted as "what would he have had to say", ie what would he say if he were still around. "not a lot" is probably accurate though, he'd have been speechless with rage.....

[Gromit]

There is no question of the North ceding with the Republic. But they should be consulted.

[jim360]

Every time Theresa May opens her mouth these days the pound falls another cent or so. On the other hand there are supposedly advantages to a weaker pound... At the very least some of the more severe falls in the last few months have tended to be followed by modest recoveries.

[mikey4444]

Jim...perhaps we should add another famous saying to the Tory Collection ::::

"The Pound is OK with us" !

[mushroom25]

//the pound is safe with us//

it's not in the gift of any politician - of whatever leaning - to say that. it's market forces that dictates the value of the pound, not the government. and the strength of the dollar - the traditional currency benchmark - is completely beyond the control of anyone in the UK.

[Hopkirk]

Ian Paisley was never speechless

[mikey4444]

Mush....so its a complete coincidence then, that the pound has dropped 20% since the Brexit vote ?

[mushroom25]

maybe - but over the same period, the chance of Donald trump being elected president have gone from joke to certainty. might that not have had an effect on the strength of the dollar?

[jim360]

It's obviously no coincidence, but on the other hand no politician is in control of how the ForEx markets will react -- least of all to speeches that haven't even been given yet. When the Supreme Court reaches its inevitable decision of rejecting the Appeal, I shouldn't be surprised to see the pound jump up in response, for example -- but that's hardly the judges' faults, or something they should take into consideration.

And anyway, the reason the pound has tumbled since Brexit is, partially, because the markets failed to anticipate the outcome of the referendum. Sure, they don't like the outcome, and are particularly disgruntled at the idea of "hard Brexit" -- but, I suppose by definition, the change in Sterling means that the markets priced the pound wrongly. It follows that they may be doing the same now; if Brexit turns out to be nowhere near as Black as it's been painted, the markets will readjust up.

Long story short, I can't say I've enjoyed watching Sterling tumble in price (and yes, the boom in UK Stock Markets is pretty strongly correlated with this), but it remains a short(ish)-term fall, with a complicated set of benefits or disadvantages for the UK economy; whereas Brexit should be evaluated economically only some time after it's happened. The markets tend to hate it, and they may be correct, but then again they may not be.

[mikey4444]

Mush....Trumps election may have had an effect, but wouldn't it have been a negative effect on the Dollar, rather then a positive effect ?

[jim360]

Actually Trump's election has led to remarkably little reaction in the markets. There was a bump, the pound rising a little against the dollar, but it soon vanished. Perhaps it's because election and inauguration were separated by long enough that we won't truly see the effects until next week, or perhaps it's because Trump isn't expected to be so bad economically (just in all other respects), but either way the markets rapidly shook off the "Trump effect".

Brexit *has* lasted in the value of Sterling and corresponding rise in share prices. Again, maybe we have to wait until it's actually known what Theresa May wants (and then again wait until we find out what we actually get) before seeing what the true effect is.

[New Judge]

“... and the UK stock market keeps breaking record highs.”

“Because the Pound is in freefall Hoppy !”

The sell your dollars and buy some shares, Mikey. That’s what the moneymen do and individuals must do the same to make the most of prevailing markets.

It makes no sense to continually keep harping on every time something changes in the markets. It is quite obvious that last June’s vote signalled turbulent times to come. I voted to leave because I believe it will be in the UK’s long term interests (i.e. beyond the week after next). Money markets respond on a minute-by-minute basis – hence the dramatic fall in the Stock Market on June 24th. Then everybody sat back and thought about it.

“Ms May could face a legal challenge from Northern Irish politicians if she tries to trigger Article 50 while Stormont is not sitting. “

Thus demonstrates the utter folly of the ridiculous devolution arrangements.

[mikey4444]

NJ....devolution is here to stay, so get over it !

And I have no shares or dollars, thank goodness !

[ToraToraTora]

how is Mrs May responsible for the currency. We are all responsible we voted brexit collectively.

[mikey4444]

Not all of us TTT ....only 51.89% !

[youngmafbog]

, just out of interest do you have the first clue on how money markets work?

I'll give you a clue, it is called speculation.

[naomi24]

Mikey, //Not all of us TTT ....only 51.89% ! //

For goodness sake, give it a rest. We voted so to quote you to NJ at 12:16 - get over it.

[Kromovaracun]

"It's fine! The pound is overvalued anyway. And look! It's up a bit this week. It's recovering and it's all going to be fine."

- Brexiteers in August.