Die most Brits slept peacefully, as of last night, a Tsunami about you broke. No one was injured, and hurt it did anyway. Because the British pound fell from one second to the other in the depth. And also hours afterwards has recovered the exchange only in part.
the scene was Tokyo. There raced the value of the currency against a clock Central European time, suddenly to over six percent in the depth. A pound is only 1,08 Euro value was 1.13 Euro, against the US Dollar, the rate fell from 1.26 to 1.18 dollars. At least one dealer even reported of a transaction for 1,13 Dollar.
Until the Morning rallied the pound to around € 1.11 and $ 1.24. The dealers are still somewhat at a loss. Minori Uchida of Bank of Tokyo-Mitsubishi, told the news Agency AFP, apparently, several sales orders for the pound had arrived at the same time, “may be due to some technical reason”. Since the volume of trade in Asia had been to this point, overall, is rather small, this had a strong impact, and the British currency on a downward spiral sent.
For the “adventurous” holds this Interpretation, however, Jens Klatt from the Forex-Broker JFD. “We talk to the trading pair of sterling-Dollar of a highly liquid currency pair, and round-the-clock, and thus one in the morning.” Of course, the liquidity could be relatively seen even less. “But a sell-off by nearly eight cents, I think this is the reason for the excluded.”
He considers it much more likely that the trading algorithms of a malfunction. Apparently, there was an acceleration of the already since days of the existing downward movement, triggered by comments by the French President Hollande. He had made it clear that the British must be set on hard negotiations with the EU. Due to the new currency losses are many computers connected then apparently algorithms for security reasons. “According to one dealer, up to eight liquidity provider shall have up to 30 seconds long-no purchase orders,” says Klatt. As a result, the currency crashed.
is not, However, decisive for him, that this event just came out of the blue. It is in the context of the for about a week-lasting Salami-crash the pounds. “There’s a hard Brexit looms and the capital are likely to persist outflows from the UK, more and more investors,” says Klatt. Therefore, there is hardly more buyers for the foreign exchange – “except possibly some solitary and small speculators.” Similar to the see also Naeem Aslam from the Broker, Think Markets. “What happened was crazy,” he told the news Agency Bloomberg. The short Crash show but at the same time, how deep it is for the British pound still could go. “The hard Brexit has looked for the Sterling home.”
Thus he alludes to the view that there is no Treaty between the EU and the UK, because both sides can’t agree, the exit would be anyway. The consequence would be that the UK banks would lose the right to be in the EU from London, British exporters would have to pay customs duty, if you want to deliver in the EU.
This is becoming increasingly likely, since the British Prime Minister, Theresa May at the Conservative formulated a few days ago, their political objectives.
For the purpose of controlling immigration from the EU countries, apparently the top priority. You even went so far, that would have to report to a law, according to which British firms, as many foreigners and how many British people do you employ – with the goal to provide those in the pillory, the supposedly too many foreign employees.
That would be, of course, especially the financial industry, which acts as global as any other industry. There also is the fear, therefore, that the UK leaves the economic course of the country for about 35 years has been that of an open, liberal and less regulated Economy.
The Central organ of the liberal economic elite, “the Economist”, has this only just in an editorial. In economic policy terms, the Conservatives moved to the left. “It is disturbing: A systematic rejection of the way the country was governed over the decades, for Bad and mostly for the Good.” Because of Britain’s strength is its open, flexible, and mostly urban society services and particularly mobile and international workforce.
But this is the Thinking of the financial elite in London. Exactly against the anger of many who voted in the Referendum for the Brexit turned, however. You May meet with a new rhetoric now, with the result that even the “Economist” assumes that you will gain in the next election to a landslide victory.
The Problem here is that The hated London pays more in income tax office as the 36 larger municipalities, and the financial industry for ten per cent of the economic output of the country. If you feel pushed before the head, then the tendency to emigration is likely to increase – after anyway, currently, many banks and financial service providers check this to after the Brexit in the EU continue to do business.
meanwhile, the British FTSE 100 was up again on Friday and listed in order more close to its all-time high on Tuesday. What seems at first glance surprising, however, is easily explainable. Nemat Shafik, the Deputy Head of the Bank of England, had already indicated a few days ago that the Central Bank will respond to the new turmoil. At its next meeting on 3. November you could print loosen consequently, the monetary policy, that is to say: even more money. Alone, this leaves the share prices rise.