{"id":140181,"date":"2019-01-15T17:12:40","date_gmt":"2019-01-15T22:12:40","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=140181"},"modified":"2019-01-15T18:17:34","modified_gmt":"2019-01-15T23:17:34","slug":"brexit-vote-pound-and-market-to-knee-jerk-react-before-rebounding","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/01\/brexit-vote-pound-and-market-to-knee-jerk-react-before-rebounding\/","title":{"rendered":"Brexit vote: Pound and market to knee-jerk react before rebounding"},"content":{"rendered":"
January 15, 2019<\/div>
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By George Prior<\/strong><\/p>\n

The pound has shrugged off a massive government defeat in the UK House of Commons tonight, perhaps because investors see the government\u2019s threat of a no deal Brexit as illusionary given the increasing control over the Brexit process that the legislative body is now taking, affirms the CEO of one of the world\u2019s largest independent financial advisory organizations.<\/p>\n

The forecast from Nigel Green, founder and chief executive of deVere Group, comes as UK Prime Minister Theresa May lost the meaningful vote on her government\u2019s EU withdrawal agreement by a significantly large margin of 230 votes and the pound rose by approximately one and a half U.S. cents in response.<\/p>\n

Mr Green notes: “It appears the British government is currently in brinkmanship mode.<\/p>\n

“Mrs May says she is not \u2018running down the clock\u2019 to the deadline of 28th March, but in all\u00a0likelihood she will be re-submitting her Brexit plan with only a few minor tweaks, and so taking up government and parliamentary time that could perhaps be spent exploring other options that can command more support from MPs. In all\u00a0probability,\u00a0the government will seek\u00a0an extension\u00a0to Article 50.<\/p>\n

Mrs May does not want to be the Prime Minister who takes the country into a chaotic no deal Brexit on 29th March.<\/p>

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“The longer the Brexit process is extended, the less chance of a no deal and greater chance there is of a second referendum that will reject\u00a0Brexit,\u00a0or a soft Brexit.\u00a0 This will please global financial markets and favour the pound and UK financial assets.\u201d<\/p>\n

He continues: \u201cFollowing the leader of the opposition Labour party, Jeremy Corbyn\u2019s tabling of a vote of no confidence, there is greater chance of a general election. But in normal times this would spook the markets and have a directly negative impact (in the short-term at least) on the pound, the FTSE and UK financial assets generally.<\/p>\n

“But these are not normal times, and the DUP and Conservative MPs who\u00a0vote\u00a0against the government\u2019s Brexit bill are unlikely to vote against the government. A general election\u00a0seems a low probability outcome.”<\/p>\n

Mr Green concludes: \u201cAs the uncertainty rumbles on, portfolio diversification should remain the major strategy for investors.\u201d<\/p>\n

About:<\/strong><\/em><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior The pound has shrugged off a massive government defeat in the UK House of Commons tonight, perhaps because investors see the government\u2019s threat of a no deal Brexit as illusionary given the increasing control over the Brexit process that the legislative body is now taking, affirms the CEO of one of the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-140181","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/140181","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=140181"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/140181\/revisions"}],"predecessor-version":[{"id":140182,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/140181\/revisions\/140182"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=140181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=140181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=140181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}