Pound drops as fears of no-deal Brexit grow

 

 

LONDON (Reuters) - Sterling dived on Wednesday as concerns rose that the United Kingdom may be headed for a disruptive no-deal Brexit after Prime Minister Boris Johnson moved to restrict parliamentary time before Oct. 31.

 

Johnson said on Wednesday he would schedule a Queen’s Speech for Oct. 14 in order to launch new legislation. He denied he was seeking to prevent parliament from obstructing his Brexit plans.

 

The move limits the amount of parliamentary time available to lawmakers who want to prevent him taking the country out of the EU without an exit deal.

 

The pound, already trading lower on the day, extended its drop to hit $1.2156, a six-day low, and was last down 0.7% on the day GBP=D3.

 

Against the euro the British currency also weakened to 91.265 pence, its lowest in nearly a week, trading last down by 0.7% at 90.89 pence EURGBP=D3.

 

“For the pound to recover the fall this morning, anti-no deal MPs will have to get their acts together in the first weeks of September,” Jordan Rochester, a strategist at Nomura said, raising the odds of a no deal Brexit to 44% vs 40% earlier.

 

The latest move from Johnson comes a day after lawmakers who are opposed to a no-deal Brexit met to discuss ways they could use parliamentary procedure to force Johnson to seek a delay to Brexit.

Sterling had rallied in recent days on hopes that Britain’s opposition parties can stop a no-deal Brexit.

On Tuesday, it hit a one-month high against the dollar and the euro.

 

Johnson has said the UK is leaving the European Union with or without a deal on Oct. 31, and media have previously reported that he wants to suspend parliament to help force through an exit.

 

-- © Copyright Reuters 2019-08-28

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Oops!

1 THB = 1 GBP coming

 

Unless you let Boris the Great perform his magic!

7 minutes ago, HeyHeyHey said:

1 THB = 1 GBP coming

 

Unless you let Boris the Great perform his magic!

Don't be such a silly billy.

1 minute ago, billd766 said:

Don't be such a silly billy.

Dennis Healey lives!!

5 minutes ago, Joe Mcseismic said:

Dennis Healey lives!!

I remember him well.

 

A nice man and liked a good drop of the crushed grapes IIRC.

13 minutes ago, HeyHeyHey said:

1 THB = 1 GBP coming

 

Unless you let Boris the Great perform his magic!

Sweet would love it ......I could sell everything I have in Thailand go back Uk and be a multi millionaire ????????????????

GBP was 37.55b at 2PM August 28, 2019 in BKK cash rate. Start screaming for the roller coaster ride down, GBP should start trading below 37 baht soon, maybe down to 35 baht within a week or 2.

Dictator Boris is doing a fine job of running the UK into the ground.

24 minutes ago, fishtank said:

Dictator Boris is doing a fine job of running the UK into the ground.

 

 

The last 3 words ruined an otherwise good post..

3 hours ago, fishtank said:

Dictator Boris is doing a fine job of running the UK into the ground.

Yes, fine job indeed. Suspend parliament for more than a month, Sept. 12 to Oct. 14.

 

Very clever!

4 hours ago, fishtank said:

Dictator Boris is doing a fine job of running the UK into the ground.

The markets don't like uncertainty which is why it keeps dropping. Until the UK finds it feet again and is allowed to sort out its trade deals, the Pound will be stuck in this perpetual limbo. 

"He denied he was seeking to prevent parliament from obstructing his Brexit plans."

 

He has no Brexit plans.

 

"He denied he was seeking to prevent parliament from obstructing his Brexit plans."
 
He has no Brexit plans.
 

His plan seems to be panning out rather well.

3 hours ago, Banana7 said:

Yes, fine job indeed. Suspend parliament for more than a month, Sept. 12 to Oct. 14.

 

Very clever!

It's 7 days extra days!

"BS talks and money walks" to flip the adage

Trolling meme removed.   Please remember it is a discussion forum.  

 

Yes, it is about time opposition to a no-deal by MPs is coordinated to prevent it happening. Currently, there's so much infighting amongst MPs who are (as usual) failing to get their act together, that Johnson is having a free ride to his eventual downfall - and unfortunately, also the UK.

 

IMO, this provocative anti-constitutional act by Johnson could be enough to see him off after a no-confidence vote is passed during September, after parliament  - as is their constitutional democratic right - has taken over HoC business and issued a new law to prevent a no-deal.

 

However, hope for the best and prepare for the worst. Batten down the hatches as it's going to be a long painful ride for sterling, whatever happens. 

 

Forecast: an exchange drop to around 32 baht to the pound up to October 31st - and falling under 30 baht if we crash out with a no-deal??

 

 

 

 

 

  

 

2 hours ago, stephenterry said:

Yes, it is about time opposition to a no-deal by MPs is coordinated to prevent it happening. Currently, there's so much infighting amongst MPs who are (as usual) failing to get their act together, that Johnson is having a free ride to his eventual downfall - and unfortunately, also the UK.

 

IMO, this provocative anti-constitutional act by Johnson could be enough to see him off after a no-confidence vote is passed during September, after parliament  - as is their constitutional democratic right - has taken over HoC business and issued a new law to prevent a no-deal.

 

However, hope for the best and prepare for the worst. Batten down the hatches as it's going to be a long painful ride for sterling, whatever happens. 

 

Forecast: an exchange drop to around 32 baht to the pound up to October 31st - and falling under 30 baht if we crash out with a no-deal??

 

It was perfectly constitutional. Proroguing Parliament happens every year or two and was long overdue since the current session has gone on for 3 years already. If Parliamentarians were that worried about losing time they could have cancelled their multiple week recess that they are currently enjoying, but they probably had nice holidays booked. Now they're wining like babies about losing 4 days (once you allow for the conference recess). 

 

 

10 hours ago, Banana7 said:

GBP was 37.55b at 2PM August 28, 2019 in BKK cash rate. Start screaming for the roller coaster ride down, GBP should start trading below 37 baht soon, maybe down to 35 baht within a week or 2.

36.57 bangkok bank buy notes

It will take decades to recover significant value.  Mind you it was overpriced for years too.

10 hours ago, fishtank said:

Dictator Boris is doing a fine job of running the UK into the ground.

No no he is not, it was already running into the ground. He is doing what the people voted for. The EU will screw UK into the ground as punishment. We do not need a deal. Many countries have already confirmed they will and want a free trade deal with UK. 

USA, CANADA, AUSTRALIA, NEW ZEALAND, SOUTH AFRICA AND A NUMBER OF ASIA COUNTRIES. 

Within a year of leaving UK will be booming. 

We will. Have our old fishing areas back.

you all thinking negatively. 

3 minutes ago, shaurene said:

No no he is not, it was already running into the ground. He is doing what the people voted for. The EU will screw UK into the ground as punishment. We do not need a deal. Many countries have already confirmed they will and want a free trade deal with UK. 

USA, CANADA, AUSTRALIA, NEW ZEALAND, SOUTH AFRICA AND A NUMBER OF ASIA COUNTRIES. 

Within a year of leaving UK will be booming. 

We will. Have our old fishing areas back.

you all thinking negatively. 

Awwwwwww..........don't you just love unrealistic optimists? Bless 'em.

3 minutes ago, JonnyF said:

It was perfectly constitutional. Proroguing Parliament happens every year or two and was long overdue since the current session has gone on for 3 years already. If Parliamentarians were that worried about losing time they could have cancelled their multiple week recess that they are currently enjoying, but they probably had nice holidays booked. Now they're wining like babies about losing 4 days (once you allow for the conference recess). 

 

 

Agreed, and I have no issue in principle; however the timing of such an action, IMO, is evidence that Johnson is riding roughshod over parliament by curtailing the time for parliament to prevent a no-deal. 

 

What I find more galling is that his 'backers' and 'far-right-wingers' are hell bent on seeing off Corbyn's social democracy party even if it means breaking up Britain to achieve it. 

 

    

18 minutes ago, JonnyF said:

It was perfectly constitutional. Proroguing Parliament happens every year or two and was long overdue since the current session has gone on for 3 years already. If Parliamentarians were that worried about losing time they could have cancelled their multiple week recess that they are currently enjoying, but they probably had nice holidays booked. Now they're wining like babies about losing 4 days (once you allow for the conference recess). 

 

 

This is going slightly off  topic

Parliament votes on the recess for the conference season . This year it was being rumoured the recess would be voted down.

The other major factor is that during the conferance recess parliament business is not stopped. Under prorugation all business stops and falls away.

Another media headline - and forums such as this one post Brexit topics ad nauseum, knowing that their marketing income would continue with a 'ready-made' ex-pat audience.

 

It's all about money...

With TransferWise - Fast & easy transfer - one still get

 

37025 ThB for 1000 Pounds.

Totally predictable and as previously stated it will be Valentines day at the earliest before daylight appears between the post-brexit pound and the mickey-mouse institution we're abandoning.

36 minutes ago, stephenterry said:

Agreed, and I have no issue in principle; however the timing of such an action, IMO, is evidence that Johnson is riding roughshod over parliament by curtailing the time for parliament to prevent a no-deal. 

 

What I find more galling is that his 'backers' and 'far-right-wingers' are hell bent on seeing off Corbyn's social democracy party even if it means breaking up Britain to achieve it. 

 

    

Except for the fact that the wonderfully unified and cohesive British parliament have already had the best part of the previous 3 years to prevent no-deal.

 

Enough is enough and as much as I despise BoJo and the shamelessly duplicitous Tories, just DO IT. If it's a bad deal they wanted, then MP's should have gotten behind Theresa May when they had the chance. She did graciously grant them three attempts to do this. Conflating the now very real prospect of no-deal as some validation for a second referendum is where the opposition aka remainers lost the collective plot, went totally off-plan and bogged down any chance of the UK leaving with a better deal earlier.

 

As pointed out in an earlier post, if a no-deal Brexit needed so much additional debate, why didn't our elected parliamentarians and that gobby House Speaker not raise the prospect of FORGOING the summer recess to get this sorted?

 

3/10

 

Must try harder!

5 hours ago, Sticky Wicket said:

It's 7 days extra days!

Always darkest before the dawn