Sterling has been falling ever since a series of resignations hit Theresa May’s government today. Pound has now has fallen 1.6 per cent to $1.2785 against the dollar and is facing its worst one-day drop since June 2017.
Viraj Patel at ING tweeted that leadership crisis could see pound in the range of $1.24-$1.27 versus the US dollar. In case of a no-deal Brexit scenario by March 2019, sterling could slip to a low of $1.20.
Increasingly likely that $GBP markets should be looking at possible outcomes of a leadership challenge (first 4 👇)
While it may seem the UK is in political chaos, $GBP is a major reserve currency & so the FX economics is completely different to an Emerging Market 1/2 https://t.co/zdEkaqhC9I
— Viraj Patel (@VPatelFX) November 15, 2018
— Indeed (@IndeedUK) November 15, 2018
#Brexit has collided with reality and now the cowardly bastards who plotted its course scramble for the lifeboats squealing ‘it’s all her fault! We could have magicked the icebergs away!’
This is a crisis. The country has the right to speak again. We need a #PeoplesVote.
— J.K. Rowling (@jk_rowling) November 15, 2018
— Ell Potter (@Pottell) November 15, 2018
According to BBC business editor Simon Jack: “The odds of a general election have just gone up and that means the possibility of a Corbyn government must have increased as well.
“Markets don’t like the prospect of that because of Labour’s intention to raise taxes on companies and nationalise large sections of the economy.”
— Intertrader (@InterTraderNews) November 15, 2018
— charles anyan Ⓜ️ (@CharlesAnyan) November 15, 2018