{"id":154750,"date":"2019-09-04T10:30:00","date_gmt":"2019-09-04T14:30:00","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=154750"},"modified":"2019-09-04T08:43:15","modified_gmt":"2019-09-04T12:43:15","slug":"the-pound-will-rebound-short-term-but-remains-vulnerable-and-volatile","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/09\/the-pound-will-rebound-short-term-but-remains-vulnerable-and-volatile\/","title":{"rendered":"The pound will rebound short-term but remains vulnerable and volatile"},"content":{"rendered":"
September 4, 2019<\/div>
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By George Prior<\/strong><\/p>\n

The pound will be rebounding in the short term as the UK Parliament seizes control to try and block a no-deal Brexit – but with major political chaos and a looming election, the currency remains vulnerable.<\/p>\n

This is the warning from Nigel Green, the CEO and founder of financial advisory giant deVere Group, which has more than $12bn under advisement.<\/p>\n

It comes as Uk lawmakers s on Tuesday night in the House of Commons voted in favour of debating a motion to take the no-deal Brexit off the table and ask the EU for an extension. Prime Minister Boris Johnson has declared he will call a general election if the motion passes.<\/p>\n

Mr Green observes: \u201cAfter falling to its lowest level in 34 years on Tuesday, the pound began to rebound after the Prime Minister lost his Commons majority as Conservative member of parliament\u00a0Phillip Lee crossed the floor\u00a0to join the Liberal Democrats \u2013 putting Boris Johnson\u2019s \u2018do or die\u2019 Brexit agenda under enormous pressure.<\/p>\n

\u201cThere was then another enormous blow to the PM on Tuesday evening when he lost his first Parliamentary Brexit battle.<\/p>

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\u201cLawmakers\u00a0have, in effect, seized control of Parliament\u2019s agenda on Wednesday and will try and force through legislation to stop a no-deal Brexit.<\/p>\n

\u201cThe squeeze on Boris Johnson\u2019s plans will have a positive effect on the pound in the short term \u2013 we can expect it to trade considerably higher in the coming sessions as the potential for the PM losing his threat of no-deal increases.\u201d<\/p>\n

He continues: \u201cHowever, this might also be put in context.\u00a0 The rebound will be tempered by the possibility of an imminent election.<\/p>\n

\u201cAn election always creates uncertainty and therefore turbulence for sterling, but even before it is called there will be major question marks as Jeremy Corbyn, the opposition Labour leader, is now demanding no-deal is off the table before he agrees to go to the polls.<\/p>\n

\u201cAnd 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 a significant sterling sell-off.\u201d<\/p>\n

The deVere CEO concludes: \u201cWhilst recent developments in the parliament move towards reducing the risk of a no-deal Brexit, it is still a critical issue for the performance of the pound.<\/p>\n

\u201cThere remains major political upheaval in the UK and a looming election.\u00a0 This uncertainty means the currency remains vulnerable and volatile.\u201d<\/p>\n

About:<\/strong><\/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

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior The pound will be rebounding in the short term as the UK Parliament seizes control to try and block a no-deal Brexit – but with major political chaos and a looming election, the currency remains vulnerable. This is the warning from Nigel Green, the CEO and founder of financial advisory giant deVere […]<\/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-154750","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154750","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=154750"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154750\/revisions"}],"predecessor-version":[{"id":154751,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154750\/revisions\/154751"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=154750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=154750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=154750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}