{"id":152469,"date":"2019-07-30T10:15:13","date_gmt":"2019-07-30T14:15:13","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=152469"},"modified":"2019-07-30T08:02:32","modified_gmt":"2019-07-30T12:02:32","slug":"more-pain-for-the-pound-under-both-boris-johnson-and-jeremy-corbyn","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/07\/more-pain-for-the-pound-under-both-boris-johnson-and-jeremy-corbyn\/","title":{"rendered":"More pain for the pound under BOTH Boris Johnson AND Jeremy Corbyn"},"content":{"rendered":"
July 30, 2019<\/div>
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By George Prior<\/strong><\/p>\n

The pummelled pound is going to continue to be battered either way in the short to medium-term under Boris Johnson or Jeremy Corbyn, says the CEO of one of the world\u2019s leading financial advisory organizations.<\/p>\n

Nigel Green, the founder and chief executive is speaking out after sterling dropped more than 4 per cent on Tuesday in its worst month since October 2016 on an increasing probability of the UK leaving the EU on 31 October in a no-deal Brexit.<\/p>\n

Mr Green comments: \u201cThe British pound is now the second-worst performing currency in the entire world.<\/p>\n

\u201cThere is no end in sight to the embattled British pound\u2019s plight with both the current Prime Minister Boris Johnson and the leader of the official opposition Labour Leader Jeremy Corbyn promoting policies that will deliver fresh \u2013 and serious – blows to the currency.\u201d<\/p>\n

He continues: \u201cMr Johnson is ramping up no-deal preparations and it looks increasingly likely the UK crashes out of the EU in a no-deal scenario in October.\u00a0 Even though this has largely been priced-in by the markets, there can be no doubt that it has also intensified uncertainty and, in response, the already weak pound fell and continues to flounder.<\/p>

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\u201cWe can expect this to continue as the Johnsons administration takes brinkmanship with the EU to a higher level, the closer we get to the Brexit deadline.<\/p>\n

\u201cShould the UK leave with no-deal, the pound can be expected to remain weak for several years until the country and the bloc readjusts.\u201d<\/p>\n

Mr Green goes on to add: \u201cIn addition, many observers predict that there will be a general election before the end of the year. All by itself this too will create uncertainty and therefore turbulence for sterling.<\/p>\n

\u201cBut should a Corbyn-led Labour party win that election, there will be even more bad news for the pound.<\/p>\n

\u201cHis anti-business rhetoric, and high tax and low-profit policies would lead to considerable and sustained selling of the pound.\u201d<\/p>\n

Last month, Nigel Green noted: \u201cDuring the past two years, the pound has been battered when it comes to its price against other currencies.<\/p>\n

\u201cThe significant drop in the value of the pound has contributed to reducing people\u2019s purchasing power and a drop in UK living standards. Weaker sterling means imports are more expensive, with rising prices being passed on to consumers.<\/p>\n

\u201cThe fall in the pound is good for exports some claim, but it must be remembered that around 50 per cent of UK exports rely on imported components. These will become more expensive as the pound falls in value.<\/p>\n

\u201cA low pound is, of course, bad news for British holidaymakers and travellers abroad – with trips to Europe and the U.S. increasingly expensive.\u00a0 Even destinations such as Dubai and China are more expensive as their currencies are pegged to the U.S. dollar.<\/p>\n

\u201cArguably, the key issue for the UK, however, is that one of its biggest and most important sectors, financial services, will suffer from another knock to the pound. It will be hit because it is built on foreign investment that puts its faith in a strong pound.\u201d<\/p>\n

The deVere Group CEO concludes: \u201cWhatever happens now, the already battered British pound is set for more punishment under either Johnson or Corbyn.<\/p>\n

\u201cAs such, we can expect to see a surge in domestic and international investors in UK assets considering the international options available to them in order to build and safeguard their wealth.\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.<\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior The pummelled pound is going to continue to be battered either way in the short to medium-term under Boris Johnson or Jeremy Corbyn, says the CEO of one of the world\u2019s leading financial advisory organizations. Nigel Green, the founder and chief executive is speaking out after sterling dropped more than 4 per […]<\/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-152469","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152469","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=152469"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152469\/revisions"}],"predecessor-version":[{"id":152470,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152469\/revisions\/152470"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=152469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=152469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=152469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}