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I hope you don't trade the same way you really want to be right on this
But jokes aside, we'll see how this works out (or not). There are still way too many unknowns on too many areas to understand what, if anything, will happen.
The only known known we have so far is that nobody in the general populace knew what they were voting for, or against. Oh, wait, that's the same for all referendums and elections isn't it..
Sterling slipped close to €1.08 as it continued a recent slide which has taken it beyond previous post-referendum lows.
It has not been as low since October 2009 when it came close to parity with the euro.
The pound's weakness will add to the expense for British holidaymakers currently on the continent, making meals, hotel stays and road tolls priced in euros more costly.
It came as the single currency was boosted by monthly economic data showing manufacturing export orders growing at their fastest pace for six and a half years.
The pound was also down against the US dollar, trading at below $1.28 for the first time since the end of June.
Britain's currency has weakened dramatically since the Brexit vote in June threw up uncertainty over what the future holds for business, trading arrangements and the country's broad economic future.
The slump in the pound has had a major economic impact already, resulting in higher import costs which have helped to drive up inflation.
Now, the Government is trying to move forward formal Brexit discussions with a series of position papers outlining potential compromises over some of the issues likely to block progress.
But the developments are yet to produce a positive impact for sterling.
Bank of Montreal strategist Stephen Gallo said: "We think it's too early in the cycle for Brexit details to have a dramatic effect on the pound.
"But there hasn't been any real progress from Brexit negotiators on shifting the discussions from exit conditions over to trade."
U.K. consumer spending barely grew in the second quarter, business investment stagnated and trade added nothing to growth, leaving the economy struggling to keep up momentum.
The 0.1 percent increase in household expenditure was the weakest since 2014 and is a further sign of how support from the consumers is waning. Gross domestic product expanded 0.3 percent in the three-month period, unrevised from an initial estimate and leaving growth in the first half at its worst since 2012. It’s also the slowest among Group of Seven nations that have reported so far.
The data reinforce the view the economy has moved into a slower growth phase, at a pace well below its average in recent years. The change is partly related to the pound’s drop since the Brexit vote, which has pushed up inflation, while confidence has flagged amid a lack of clarity on the type of deal the U.K. will agree with the European Union.
The Confederation of British Industry said Thursday that retail sales fell the most in more than a year this month, which tallies with Bank of England Governor Mark Carney’s view that consumers are in the “teeth” of a squeeze on their pockets. Spending could improve this quarter, however, as the March-June figures were skewed by a tax-driven drop in car sales.
Brexit is also having an impact on investment decisions, and reports indicate that some firms have become reluctant to commit to major projects. In the three months through June, investment stagnated compared with both the first quarter and a year earlier.
LONDON (Reuters) - Britain’s economy is beginning to feel the Brexit pinch, or perhaps given the strong performance of the rest of the world economy, it should be punch.
After a prolonged period of relatively benign economic numbers following last year’s vote to leave the European Union, there are now signs of a potentially serious slow down.
They stretch from retrenching households to hesitant businesses, from a widening trade deficit to lacklustre manufacturing. They also come just as the EU and Britain return to the negotiating table, the latter with a handful of new post-Brexit position papers.
Since mid-August, London has been releasing official papers on issues such as trade, customs, the European Court of Justice, and what the province of Northern Ireland’s future border with EU member Ireland will look like.
The performance of Britain’s pound over that period suggests few people were impressed enough with them -- or with the likelihood they will come to pass -- to overcome the economic signs.
Running through the release of five official Brexit papers, the pound has lost more than 1.4 percent against the dollar since Aug 14 and the euro has gained the same against sterling.
While the pound weakness is not directly linked to the papers, their release has clearly done nothing to improve confidence in the currency.
That is at least in part because the UK economy is starting to feel the impact of Brexit.
“Economic momentum looks uncertain. Monthly factory orders this year suggest that the sector is failing to capitalise from a weaker sterling and a pick-up in global trade,” Jaisal Pastakia, investment manager at Heartwood Investment Management, said in note.
Theresa May is set for disappointment on her visit to Tokyo this week after Japanese officials signalled they would not rush into free trade talks with Britain.
The British prime minister, who is hungry for new trade agreements to show the benefits of Brexit, is expected to discuss a UK-Japan version of the deal Tokyo agreed in principle with the EU last month when she meets her Japanese counterpart Shinzo Abe.
But Japanese officials say their priority is completing the deal with Brussels, while negotiations with Britain will be difficult until there is clarity about its future relationship with the EU.
“I don’t think there will be substantial progress,” said one Japanese trade official. “We haven’t finished [free trade] negotiations with the EU, just agreed at the political level, and many issues still remain.”
The official said the UK side was being “quite aggressive” in pushing for a commitment on a future trade deal with the world’s fourth-largest economy. Mrs May will argue that such an arrangement would be mutually beneficial.
“We were big supporters of the EU/Japan trade deal and were engaged in negotiating it,” said one of Mrs May’s allies. “It would make sense for that deal to be replicated for us.”
However, Yoshiji Nogami, president of the Japan Institute of International Affairs, and a former ambassador to the UK, said: “We can’t negotiate until Britain is out of the EU. I think what Mr Abe wants to hear from the prime minister is where she hopes to land on Brexit.”
This whole Brexit situation is the biggest own goal ever, with no sign of the two biggest liars - so sorry, I mean proponents - Johnson & Gove, both of whom should be banished forever from the UK political scene.
You can tell which side of bed I got out of this morning ...
Prime Minister Theresa May is set to approve paying as much as 50 billion pounds ($64.8 billion) for leaving the European Union in a bid to kickstart trade talks, but won’t disclose details until after the Conservative Party conference in October, The Sunday Times reported, citing a source.
Britain would pay up to 17 billion pounds a year to Brussels for three years after Brexit before ending payments ahead of the 2022 general election, the Times added. The newspaper also said that May’s office "did not recognize" the plan on the payment.
How much the U.K. owes the EU in leaving the bloc is among the most difficult issues concerning Brexit, with analysts estimating that the EU will put forward a gross bill of as much as 100 billion euros. Britain’s government acknowledged in July that it will have a bill to pay, saying it wants to “determine a fair settlement of the U.K.’s rights and obligations.”
In a separate report, The Mail on Sunday reported that May has been advised that Britain may have to pay up to 46 billion pounds to break the deadlock of the Brexit talks.
Last week, the European Union’s negotiator, Michel Barnier, said the talks still had done nowhere near enough for there to be a prospect of moving on to trade discussions after October. The big sticking point is money: how much the U.K. is prepared to pay toward commitments the EU has made on the assumption of continued U.K. membership.
