Earlier this week we saw the Pound fall to record low levels against the Euro and the US Dollar, however yesterday saw some respite for Sterling. Theresa May had said that the government would allow closer scrutiny of their negotiation plans, which gave Sterling a little lift. The rally didn’t last long however, and the Pound is on the back foot again, after a change of tone and insistence that parliament would not be given a vote, and that the government alone would invoke article 50.
It’s starting to get a little messy, with a legal challenge in the high court on Monday, raised by pro-Remain campaigners, aiming to give parliament a vote on whether to invoke Article 50. This in my view is a complete waste of time as the referendum was ratified by parliament and all this is going to do, whether successful or not, is increase the uncertainty that is putting pressure on the Pound. Nicola Sturgeon has also started making noises about another independence referendum.
This is all starting to get very political, and it’s not going to help the Pound at all. I think if this bickering continues then all it will do is push the Pound lower and lower, pulling exchange rates down even further from where they are now.
Brexit; love it or hate it?
And as I’m sure readers will know, there is also a row between Unilever and Tesco due to the former wanting to raise prices of things like Marmite and Pot Noodles by 10% due to the fall in the value of the Pound, and Tesco digging their heals in “to protect consumers”. Hmm. I don’t remember my martime being much cheaper when GBP/EUR was at €1.44 last year.
I’m partial to some marmite from time to time and personally not that bothered about paying 25p more for a jar, but what this does demonstrate is that the weak Pound will start to filter through to consumers. I think that it’s high time Labour, the SNP and the Conservatives stop their political bickering and points scoring, and start to work together in the best interests of the British people. Personally I think it’s time to look to the future, and work together to ensure that Britain can remain prosperous as an independent sovereign nation, however the current political in-fighting will not help in this regard one bit. What’s needed now is some stability and certainty over what is happening. Until we have that, expect the Pound to fall further against other currencies.
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