On ND’s advice I am trying some different header titles.
There was a flash crash in the pound earlier today in Asisa, these things can happen when over 90 of trade is done by robots who are tracking news and every small event that may impact the markets (even this website gets hundreds of bot hits per day, likely for this reason).
Market sentiment in the days of algorithmic trading is a tough beast, as the Pound gets hammered and all sorts of nonsense is spoken about hard Brexit (as if there was another choice – again, remoaner fantasising) and how bad that will be. As such, I won;t be surprised to see the Pound hit parity for a while with the Euro and even the dollar may touch less than $1.20 for a few days.
The thing is, with a huge current account deficit and a desperate need to increase exports and FDI, then a falling pound is just what we need. OK, so a bit miffed about holiday money, but there you goes; also that is the ONLY downside I can yet see to Brexit so far. Everything else is good news, even the falling pound is just what we need at a macro-level.
Brexit is turning out just like 1992. The UK fell out of the ERM, the Government was humiliated, the recession was still working its way out of the system, everyone felt the country was going to the dogs. Fast forward a few years and it was the start of one of the longest economic booms in our history