Sterling bounces off record trade-weighted low as MPs flex Brexit
- by Dan Gutierrez
- in Markets
- — Oct 15, 2016
Investors sold the pound after Brexit minister David Davis told MPs it was "not black or white" whether the United Kingdom would stay in the single market.
Sterling has dropped 17 percent against the U.S. dollar since Britain voted to quit the European Union.
Sterling spiked yesterday morning following an announcement from Prime Minister Theresa May that she would allow MPs to debate on potential "Brexit" strategy ahead of official negotiations early next year.
Most investors would prefer a "soft" Brexit scenario in which Britain keeps in or close to the EU's single market and retains many trade and business benefits, and so are sensitive to any signs that the process is moving in the opposite direction.
The British pound has fallen to a low measured against a basket of trading currencies not seen since the mid-19th century, according to the Bank of England (BoE), RT reports.
Vote raising New Jersey gas tax cents delayed
And in the Assembly, only a simple majority would be required for final passage. "The Assembly is rock-solid", Greenwald said. The only state with a lower gas tax than New Jersey is Alaska, according to the American Petroleum Institute .
The British pound showed some signs of recovery on Wednesday, rising more than 1 per cent against the USA dollar and the euro.
"But you would have to be very optimistic to think that it will have a big impact on the process, to expect that it means they will ultimately give parliament greater say". At just above $1.22, sterling is at its lowest level in 31 years.
Lawyers leading a bid to force the government to seek parliamentary approval before formally starting the process that will take Britain out of the European Union told the High Court on Thursday that the June 23 referendum had no constitutional foundation, and was merely "advisory".
"While Theresa May's acceptance that parliament should scrutinise her plan for Brexit in part provides for some form of a pre-article 50 "checks and balances" procedure, it is unlikely to result in a detailed plan being revealed nor change the current government stance", he said.
"The move this morning was on May's comments but largely because they were initially read as something they weren't: she is not really changing stance, parliament will not be able to veto a hard Brexit", said the head of hedge fund sales at one large worldwide bank in London. It traded as low as $1.2117 against the greenback. "It is hard to see who is going to come in and support it from here", said the hedge fund sales head.
