the Pound strengthened quickly when the british prime minister, Theresa May spoke about the country’s Brexit plans on Tuesday.
At 12.45 on Tuesday, in the midst of Theresa Mays speech if the government Brexitplaner, stack the british pound. An hour later, had the pound strengthened to 2.5 per cent.
“I suspect that the sharp pundrörelsen has to do with her statement that you intend to allow parliament to vote on secession, and that she mentions a transition period,” says SEB’s valutastrateg Richard Falkenhäll to the world of Business.
He points out that the pound has fallen sharply against the Swedish krona in the past. A month ago, the pound in closer 11,70 kronor, compared with less than 10,80 crowns on Monday, before the strong pundförstärkningen, struck in conjunction with the Mays speech on Tuesday. It corresponds to a fall of nearly 8 per cent.
According to the Falkenhäll, it is now clear that May seek a “clean exit” from the EU which will then be replaced by a trade agreement.
As she said: we are looking for a partnership and not a membership” and that “no deal is better than a bad agreement,” he says.
Richard Falkenhäll interpret the century that Theresa May sees the Uk as a very important export market for the other EU countries and that she realized that it is not possible to have full access to the EU’s internal market.
According to the valutastrategen it is now the development of the british economy that worries the market the most .
– When we more and more begin to suspect that we are approaching a hard brexit is the big issue of the british companies is starting to become more cautious with their investments and if households start to hold again.
What development can we expect from the pound going forward?
– we are Looking at the next few months so I’m pretty negative regarding the pound. I think we’ll see a weaker pound and this was just a temporary lättnadsrörelse. Rather, learn the pound to fall towards $ 10.
During Wednesday morning, the pound has strengthened slightly against the Swedish krona and around the clock 10.40 stood the course in just under sek 11 per share.