snoop1130 12,760 Posted August 8, 2019 Share Posted August 8, 2019 Sterling rout not yet over as no-deal Brexit odds jump - Reuters poll By Jonathan Cable FILE PHOTO: A pound coin is placed on broken glass and British flag in this illustration picture taken January 28, 2019. REUTERS/Dado Ruvic LONDON (Reuters) - Sterling’s recent slide is not yet over as the chances Britain and the European Union part ways without a withdrawal deal have jumped again after arch-Brexiteer Boris Johnson took over as prime minister last month, a Reuters poll found. Johnson, who was the face of the leave campaign ahead of the 2016 referendum and who took office on July 24, has repeatedly said he will take Britain out of the EU on Oct. 31 with or without a deal. Sterling fell to a low against the dollar not seen since early 2017 at the start of August. Before that divorce date arrives, the pound will fall further and trade between $1.17 and $1.20, a Reuters poll of foreign exchange strategists predicted, below the $1.21 it was at on Wednesday. “Fears of a no deal Brexit are likely to worsen, though we anticipate it will be avoided. Our official house view is that there will be a delay, but kicking the can down the road doesn’t ease uncertainty,” said Jane Foley, head of FX strategy at Rabobank and the most accurate forecaster for major currencies in Reuters FX polls last year. Britain was originally due to leave the EU at the end of March but the departure date was extended. The median forecast for a disorderly Brexit - whereby no deal is agreed - jumped in an Aug. 2-7 Reuters poll of economists to 35%, up from 30% given in July and the highest since Reuters began asking this question two years ago. Forecasts in this poll ranged from as low as 15% to a high of 75%. “Until now, it was difficult to know what a Johnson-led government would do about Brexit, given his indecisiveness, unpredictability and, at times, conflicting messages on Brexit,” said Daniel Vernazza, chief international economist at UniCredit. “However, it now seems pretty clear that Boris Johnson’s strategy is to try to force through a no-deal Brexit on October 31,” Vernazza, who does not expect Johnson to succeed, added. Economists in Reuters polls since the June 2016 referendum have consistently warned a no-deal Brexit would be the worst outcome for Britain’s economy. But as they have since late 2016 when Reuters first started asking about the most likely eventual outcome, a strong majority of economists polled still think the two sides will eventually settle on a free-trade deal. Again in second place was the more extreme option of leaving without a deal and trading under World Trade Organization rules. The third most likely outcome was Britain remaining a member of the European Economic Area, paying into the EU budget to maintain access to the Single Market yet having no say over policy. Fourth place once more went to cancelling Brexit. With a deal expected, median forecasts in the wider poll of over 50 forex market watchers gave a healthier outlook for sterling and it was expected to have rallied to $1.27 in six months and then be trading 10% higher at $1.33 in a year. Against the euro, which may struggle as the European Central Bank is expected to ease policy in September, the pound will also gain ground. On Wednesday, one euro was worth about 92.1 pence but in a year, the poll said it would drop to 87.1p. STALL SPEED Brexit worries and a U.S.-China trade war have increased concern about a global downturn and Britain’s economy has struggled to gain traction. Growth flatlined last quarter, the poll predicted, and the economy will expand only 0.3% per quarter through to the end of next year, a touch weaker than predicted last month. However the country will probably dodge a recession - the median likelihood of one within a year was put at 35% and at 40% for one in two years, up five percentage points each from last month. Other major economies are being supported by central banks easing - or about to ease - policy. But the Bank of England is not expected to change its key rate until 2021. At its policy meeting last week the Bank lowered its growth forecasts due to increased Brexit worries and a slowing global economy, but stopped short of following other central banks and considering an interest rate cut. Only 12 of 55 economists polled with a view on Bank Rate expected a cut this year or next and 19 had an increase pencilled in. “While the buoyant wage growth backdrop means it is too early to be talking about Bank of England rate cuts, the increasingly uncertain Brexit outlook means it is very unlikely that policymakers will be looking at tightening policy in the foreseeable future either,” said James Smith, developed markets economist at ING. -- © Copyright Reuters 2019-08-08 Follow Thaivisa on LINE for breaking Thailand news and visa info Link to post Share on other sites
fishtank 4,212 Posted August 8, 2019 Share Posted August 8, 2019 Well done Boris and the extremists. Doing a great job. Stuff the UK as long as you achieve your extreme right wing objectives. Link to post Share on other sites
Chivas 2,807 Posted August 8, 2019 Share Posted August 8, 2019 Yep Sterling dropping against the Euro and Dollar this Thursday afternoon London Link to post Share on other sites
Joe Mcseismic 2,301 Posted August 8, 2019 Share Posted August 8, 2019 Not Exactly going out on a limb for that prediction. Link to post Share on other sites
Denim 13,339 Posted August 8, 2019 Share Posted August 8, 2019 Fantastic news for Brit expats thinking of going home because of more stringent visa rules. Wow. I left the UK a relative poor man. If only we can get the pound down to 25 again I can go home the conquering hero ! Link to post Share on other sites
Mikisteel 422 Posted August 8, 2019 Share Posted August 8, 2019 If you got 150k in USD currency right now in UK bank what do you do? Hold hold hold and cash in when? Link to post Share on other sites
sammieuk1 20,819 Posted August 8, 2019 Share Posted August 8, 2019 Things are so bad for 50p looking pound the Turkish lira a world basket case currency is again gaining hourly as the foreigners and tourists cash in on a cheap UK Link to post Share on other sites
Dellboy218 488 Posted August 8, 2019 Share Posted August 8, 2019 1 hour ago, fishtank said: Well done Boris and the extremists. Doing a great job. Stuff the UK as long as you achieve your extreme right wing objectives. Written from an extreme left wing point of view. There was a referendum in which more people voted to leave than remain. Get over it and move on. More votes wins, it's called democracy, try practicing it. Link to post Share on other sites
david555 5,927 Posted August 8, 2019 Share Posted August 8, 2019 22 minutes ago, CNXexpat said: Borrowed it from someone picturing it on evening Pattaya nigh street TT Exchanges Link to post Share on other sites
CNXexpat 3,569 Posted August 8, 2019 Share Posted August 8, 2019 16 minutes ago, Dellboy218 said: Written from an extreme left wing point of view. There was a referendum in which more people voted to leave than remain. Get over it and move on. More votes wins, it's called democracy, try practicing it. So a Ponzi is fair too? Somebody promises that everybody becomes super rich and at the end only few become rich because everything was a huge lie. But the people decided (democratic) that they give the money. Or the grandma who was cheated by a fake policeman. But she decided to give him her money from her free will. All could find in the internet that they will be cheated but everything sounds so real, so they believe everything. Same as the Brexiteers. Link to post Share on other sites
elliss 3,101 Posted August 8, 2019 Share Posted August 8, 2019 1 hour ago, Chivas said: Yep Sterling dropping against the Euro and Dollar this Thursday afternoon London This is just a practice run , prepare for the big drop. Cut your loses , and transfer your money over now i have, ouch.. Project fact, gbp is finished . Link to post Share on other sites
ThePioneer 503 Posted August 8, 2019 Share Posted August 8, 2019 2 hours ago, snoop1130 said: Our official house view is that there will be a delay, Who would ever have thought that? Link to post Share on other sites
Scott 16,329 Posted August 8, 2019 Share Posted August 8, 2019 Inflammatory post removed. Link to post Share on other sites
sunnyboy2018 4,224 Posted August 8, 2019 Share Posted August 8, 2019 Its the uncertainty contributing to the sterling decline. When brexit is finally declared the uncertainty will end and the pound should start to rise again as sure as the Euro will decline. Link to post Share on other sites
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