As expected, the Brexit referendum and the divide opening up in Parliament is being blamed for the fall in the Pound that’s building as the currency heads towards the $1.40 handle. It’s all nonsense of course. Sterling has had an earlier dive towards $1.40 a few weeks ago, from which it has barely recovered. In fact Sterling always falls to a low every eight years regular as clockwork. 2016 is the eighth year, and a test of the floor this year was being forecast ages ago.
I’m not sure which comes first. The market manipulations or the political ones. Sterling could well tumble in the next ten months, but will then sharply recover from the new floor wherever that floor will be. Look at any fifty year chart, and count the years between market floors. It’s always eight years. It’s nothing to do with Boris Johnson or Brexit. The manipulators need an excuse to cover over their market games. Boris fighting the system day after day on TV and all over the media, will be a good one.
Longer term if Britain were to get out of the EU, and recover her sovereignty the Pound Sterling could become a strong currency, in our own control once more. Our debts could be paid off as they were under Thatcher, and the good times roll, growth return. Vote OUT.
Typical City type report from this morning –
Sterling sank against the dollar yesterday as the defection of London mayor Boris Johnson to the ‘Brexit’ camp added to concerns that a British departure from the EU is a real risk. After a positive reaction to Prime Minister David Cameron’s sealing of an EU deal on Friday with which to fight a referendum on June 23, the move by Johnson along with a handful of other senior ruling Conservatives drove a wave of selling in Asia. Bets on sterling weakness over the next six months reached their highest in more than four years.