Quote:
“The pound may have recovered from its post-Brexit lows, but it's set to face another round of Brexit heat, analysts said.
In the wake of the U.K.'s late June vote to exit the European Union (EU), the pound tumbled to as low as $1.1450 in an October flash crash.
But the currency recovered from those 30-year lows in the wake of Donald Trump's surprise U.S. election win, reaching levels above $1.27 in early December. That was up from levels under $1.24 before the election results, potentially on expectations that the president-elect could pursue a "fast-track" trade deal with the U.K.
On Thursday at 3:23 p.m. HK/SIN, the pound was fetching $1.2361.
But analysts at Nomura said in a note Wednesday that even current levels might be overly optimistic, noting that it's very difficult to determine what the market is pricing in, especially when no one yet knows what type of agreement the U.K. government will secure with the EU. Markets are speculating on a "hard, soft, flexi and transitional Brexit," Nomura notes.
Among the issues which will determine whether the Brexit is hard, soft or in between will be whether the U.K. exits the EU's single market, whether free movement of people will be allowed and whether the U.K.'s financial players will retain "passporting rights" with the continent.”
“The pound may have recovered from its post-Brexit lows, but it's set to face another round of Brexit heat, analysts said.
In the wake of the U.K.'s late June vote to exit the European Union (EU), the pound tumbled to as low as $1.1450 in an October flash crash.
But the currency recovered from those 30-year lows in the wake of Donald Trump's surprise U.S. election win, reaching levels above $1.27 in early December. That was up from levels under $1.24 before the election results, potentially on expectations that the president-elect could pursue a "fast-track" trade deal with the U.K.
On Thursday at 3:23 p.m. HK/SIN, the pound was fetching $1.2361.
But analysts at Nomura said in a note Wednesday that even current levels might be overly optimistic, noting that it's very difficult to determine what the market is pricing in, especially when no one yet knows what type of agreement the U.K. government will secure with the EU. Markets are speculating on a "hard, soft, flexi and transitional Brexit," Nomura notes.
Among the issues which will determine whether the Brexit is hard, soft or in between will be whether the U.K. exits the EU's single market, whether free movement of people will be allowed and whether the U.K.'s financial players will retain "passporting rights" with the continent.”
Can't even afford to drown your sorrows!
http://www.telegraph.co.uk/business/...stlier-brits2/
Quote:
“Champagne drinkers in Britain - the biggest export market for bubbly - face higher prices next year as the impact of the shock Brexit vote on the British pound takes its toll, champagne industry executives warned.
"The market in Britain is undergoing a period of adjustment. The brands have not yet factored in the effect of foreign exchange rates on their prices," said Charles-Armand de Belenet, marketing director for Pernod Ricard's Martell Mumm Perrier-Jouët champagne brand.
The June vote for Britain to quit the European Union led sterling to slump to its lowest level since 1985 against the U.S dollar and to fall against the euro, although it has since edged back up from those lows.”
“Champagne drinkers in Britain - the biggest export market for bubbly - face higher prices next year as the impact of the shock Brexit vote on the British pound takes its toll, champagne industry executives warned.
"The market in Britain is undergoing a period of adjustment. The brands have not yet factored in the effect of foreign exchange rates on their prices," said Charles-Armand de Belenet, marketing director for Pernod Ricard's Martell Mumm Perrier-Jouët champagne brand.
The June vote for Britain to quit the European Union led sterling to slump to its lowest level since 1985 against the U.S dollar and to fall against the euro, although it has since edged back up from those lows.”
