Tuesday, January 17, 2017

Brexit : storm warning on the pound sterling – The Figaro

The perspective of a discourse that is very strong today as the First british minister who seems determined to cut ties with the european Union creates strong shock to the pound sterling. The british currency has fallen below the symbolic threshold of 1.20 dollar. The sterling is at its lowest level for 32 years, apart from the episode of the “flash crash” of October.

financial markets fear a new cold wave that has hit the forex market. The speech of Theresa May could mark a real break. The tone would be that of “Brexit” “hard” according to relatives of the First minister of the united kingdom . Or rather “Brexit” the “clear and net”. Theresa May might as well announce the next withdrawal of the single market, the european customs union and the european Court of justice, in order to regain control of european immigration, a top priority of London.

Donald Trump to the rescue

“We want a new partnership fair (…) not a status of a partial member or associate of the European Union, which would leave us half in or half out”, said yesterday Downing Street. Theresa May should insist on the construction of a United Kingdom “open to the world” that sign its own trade agreements with countries of the Commonwealth, the asian giants and the United States. It yesterday received the enthusiastic support of the president-elect, american Donald Trump, has announced that it wants to conclude that “very quickly” to such an agreement. Theresa may, however, come up against the intransigence of the other european leaders, particularly German chancellor Angela Merkel, who refuse a “Europe à la carte”.

For the specialists of the markets, only the judgment of the supreme Court british, which must take place before the end of the month, could allow the pound sterling to regain a bit of height. It should in fact force the First british minister to seek the vote of Parliament before the effective launch of the Brexit. In the meantime, the Europeans will be able to take advantage of the weakness of the book for doing business during the January sales in London.


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