— Financial Times (@FT) October 7, 2016
The pound’s downward spiral continues
At one stage during the night the pound tumbled for a few minutes to below $1.20 on the foreign exchanges. It has recovered a bit since then but the trend from the FR chart is very clear. Before the referendum the pound was touching $1.50. Until the weekend it had kept above the $1.30 mark – a line that has been well and truly broken.
The PM’s need to say something strong at her conference seems to have gone down poorly. Announcing the March 2017 invoke Article 50 date, as she did, appears to have undermined what negotiating position that she had.
Of course this makes the UK’s exports cheaper but it also makes imports more expensive. The international oil prices are in dollars which at some stage will be seen at the pumps.
At least TMay has the consolation that she’s facing in Corbyn’s Labour a piss-poor opposition without the skills, or even the desire, to capitalise.