{"id":161410,"date":"2019-12-09T10:05:05","date_gmt":"2019-12-09T15:05:05","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=161410"},"modified":"2019-12-09T07:06:27","modified_gmt":"2019-12-09T12:06:27","slug":"boris-johnsons-brexit-plans-mean-short-term-gain-long-term-pain-for-the-pound","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/12\/boris-johnsons-brexit-plans-mean-short-term-gain-long-term-pain-for-the-pound\/","title":{"rendered":"Boris Johnson\u2019s Brexit plans mean short-term gain, long-term pain for the pound"},"content":{"rendered":"
December 9, 2019<\/div>
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By George Prior<\/strong><\/p>\n

The British pound and UK financial assets will surge on a Boris Johnson victory \u2013 but the relief for the Brexit-ravaged UK currency will be short-lived, warns the CEO of one of the world\u2019s largest independent financial advisory organizations.<\/p>\n

The warning from Nigel Green, founder and chief executive of deVere Group, comes as sterling hits its highest level since April as Mr Johnson\u2019s Conservatives hold polling leads ahead of Thursday\u2019s general election.<\/p>\n

In early Monday trading, the pound was recently up 0.25 per cent on the U.S. dollar, reaching a high of $1.318. It jumped by a similar margin against the euro, with one pound buying 1.1902.<\/p>\n

Mr Green notes: \u201cThe bounce in the pound is caused by the increasing certainty of a Conservative majority being delivered by Thursday election.<\/p>\n

\u201cShould Mr Johnson be returned as PM, the pound can be expected to reach $1.35.<\/p>

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\u201cA hung parliament would\u00a0intensify current uncertainty \u2013 due to there being the possibility of another EU referendum and another Scottish independence referendum.<\/p>\n

\u201cThe uncertainty would not only weigh on the pound but it would continue to dampen business investment which, of course, will drag on economic growth.\u201d<\/p>\n

However, the deVere CEO\u2019s message does come with a warning.<\/p>\n

\u201cThe pound\u2019s relief rally will be short-lived.\u00a0 In the medium to long-term Boris Johnson\u2019s Brexit agenda could come back to deliver another bloody nose to the currency,\u201d he says.<\/p>\n

\u201cThe serious work of negotiating a trade deal only begins on January 31.\u00a0 There is then only 11 months to achieve this. It will be a race against the clock. Should this mammoth and complex deal not be struck before the December 2020 deadline, the UK will be forced into adopting unfavourable World Trade Organization terms.\u201d<\/p>\n

He continues: \u201cThis uncertainty will be a large dark cloud looming over the pound throughout 2020, dampening any bounce.<\/p>\n

\u201cAnd should Mr Johnson ultimately fail to meet the tight deadline, the pound, UK financial assets and economic growth will be seriously impacted.\u201d<\/p>\n

Mr Green concludes: \u201cBoris Johnson\u2019s approach is likely to produce short-term gain but long-term\u00a0pain for the pound.<\/p>\n

\u201cInvestors\u00a0can help shield themselves from the risks of market uncertainty and position themselves to capitalise on the opportunities through exposure to a broad range of assets, currencies and geographic regions.\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

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By George Prior The British pound and UK financial assets will surge on a Boris Johnson victory \u2013 but the relief for the Brexit-ravaged UK currency will be short-lived, warns the CEO of one of the world\u2019s largest independent financial advisory organizations. The warning from Nigel Green, founder and chief executive of deVere Group, comes […]<\/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-161410","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161410","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=161410"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161410\/revisions"}],"predecessor-version":[{"id":161411,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161410\/revisions\/161411"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=161410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=161410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=161410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}