Sterling’s plunges to an 18-month low against the Dollar, the following comments may be useful. Contributor David Lamb, Head of Dealing – Fexco Corporate Payments.
Theresa May’s grilling in the House of Commons has prompted an outbreak of gallows humour among Poundwatchers.
Opinion is roughly split on which has the worst prospects right now – the beleaguered Pound or the embattled Prime Minister.
Ditto the question of what is hurting them most; the implacable opposition to Mrs May’s proposed deal or her decision to kick an unwinnable vote into an indeterminate time in the future.
Either way the odds of Mrs May surviving – and of some sort of Norway-style soft Brexit emerging – have lengthened. At this rate MPs could be faced with an impossibly binary choice; a ‘no deal’ Brexit or no Brexit at all.
Both options carry big risks, of either economic or political turmoil. The markets’ desire to price in these risks has sent the Pound spiralling downwards against both the Dollar and the Euro.