{"id":174122,"date":"2020-07-28T08:30:51","date_gmt":"2020-07-28T12:30:51","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=174122"},"modified":"2020-07-28T07:43:56","modified_gmt":"2020-07-28T11:43:56","slug":"brexit-worried-brits-move-to-buy-the-weak-dollar","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/07\/brexit-worried-brits-move-to-buy-the-weak-dollar\/","title":{"rendered":"Brexit-worried Brits move to buy the weak dollar"},"content":{"rendered":"
July 28, 2020<\/div>
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By George Prior<\/strong><\/p>\n

Dollar weakness and fears of a pound plunge in a hard Brexit scenario are prompting a growing number of Britons to buy dollars, reveals the CEO of one of the world\u2019s largest independent financial advisory organisations.<\/p>\n

The comments from Nigel Green, chief executive and founder of deVere Group, which operates in 100 countries globally, follow the Dollar Index, which tracks the greenback against a basket of six other currencies, falling 0.5% on Monday, trading at levels not seen since May 2018.<\/p>\n

The downside moves ahead of the Federal Reserve\u2019s policy meeting later this week.<\/p>\n

Mr Green notes: \u201cA sharp dollar sell-off on Monday is being seen by Brits who think internationally as an opportunity to buy dollars as they are fearing a sharp plunge in the pound in the event of a no-deal Brexit \u2013 which is looking increasingly inevitable.<\/p>\n

\u201cThe dollar is being weighed down by concerns over the strength of the U.S. economic recovery, the presidential election which creates uncertainty, plus the mounting tensions between Washington and Beijing.<\/p>

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\u201cWhilst the \u2018greenback\u2019 \u2013 a robust safe-haven asset in times of turbulence \u2013 is down, quite sensibly Brits are moving in to buy it as a considerable drop in sterling can be expected if the UK crashes out of the EU in December without a deal.\u201d<\/p>\n

He continues: \u201cA low pound will help to slash Britons\u2019 purchasing power and lead to a drop in UK living standards. Weaker sterling means imports are more expensive, with rising costs being passed on to consumers.\u201d<\/p>\n

The drop in sterling is good for UK exports some insist, however around half of the country\u2019s exports rely on imported components. \u201cThese will become more expensive as the pound falls in value,\u201d noted Mr Green.<\/p>\n

\u201cIn addition, a weaker pound is, of course, bad news for British expats, amongst others, who receive income or pensions in sterling and as Brits looking to travel overseas,\u201d he added.<\/p>\n

The dollar index edged slightly higher on Tuesday after slumping to a two-year low, but all eyes are now on the outlook from the Fed which may outline a possible move in policy stance.<\/p>\n

The deVere CEO concludes: \u201cThe dollar is heading towards its worst month in nearly a decade, losing 3.9% in July.<\/p>\n

\u201cAgainst the current backdrop of a continuing coronavirus spread in the U.S. putting at risk the country\u2019s economic recovery, plus the massive EU fiscal deal, it is likely that the dollar will remain under considerable pressure for some time.<\/p>\n

\u201cTherefore, Brits worried about the fallout of Brexit will increasingly move to take the opportunity to buy dollars.\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.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior Dollar weakness and fears of a pound plunge in a hard Brexit scenario are prompting a growing number of Britons to buy dollars, reveals the CEO of one of the world\u2019s largest independent financial advisory organisations. The comments from Nigel Green, chief executive and founder of deVere Group, which operates in 100 […]<\/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-174122","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/174122","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=174122"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/174122\/revisions"}],"predecessor-version":[{"id":174123,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/174122\/revisions\/174123"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=174122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=174122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=174122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}