Is There Further Downside With Sterling Against The Dollar?

Discussion in 'Forex - Currencies Forums' started by Chartman, Nov 19, 2018.

  1. Chartman

    Chartman Senior Investor

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    It looks to me as though the UK is stuck between a rock and a hard place in relation to Brexit. The Prime Minister is trying to push through her idea of Brexit while her own party, the opposition and a growing number of the public seem dead set against it. There is also the Irish party supporting the Conservatives, the DUP, who could bring down the government tomorrow if they withdrew their support. Further downside with sterling?
     
  2. longtermbull

    longtermbull Administrator Staff Member

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    On the surface it looks as though there could be further downside - especially in the event of a no deal Brexit. However, we keep seeing sterling bouncing even in these difficult times. Have the markets decided there will eventually be a deal as politicians dance to the tune of the financial markets? The tail wagging the dog?
     
  3. Buyonthedips

    Buyonthedips Senior Investor

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    Theresa May seems to be under pressure from all corners - the amount of abuse she has taken here in the UK, I dont know why she hasnt just resigned. Shocking treatment but I see further downside for sterling as no good news on the horizon yet.
     
  4. Chartman

    Chartman Senior Investor

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    They are now talking about a collapse in sterling in the event of a Brexit no-deal (which does seem a possibility!)
     
  5. longtermbull

    longtermbull Administrator Staff Member

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    There does seem to be a growing view that sterling is in the firing line but there is still a chance the UK/EU can muddle some kind fo mutually acceptable Brexit deal together. My money is on an extension to the negotiating process.
     
  6. gowiththeflow

    gowiththeflow Senior Investor

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    If there was a massive crash in the UK economy (project fear again!) surely this would have a knock on effect to trading partners such as the EU? Is there a chance any issues in the UK might create a world were contagion took hold and dragged others down?
     

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