Having closed last week around USD1.3365, the British Pound initially fell to the low 1.3350’s at the start of Tuesday’s New York trading before rallying up to a high of 1.3387. The overnight session in Asia was pretty quiet, but in London this morning the GBP moved sharply higher once stops were hit around last Friday’s intra-day high of 1.3390. GBP/USD is now on a 1.34 big figure for the first time in a week.
For many people in the UK, the best part of the festive break between Christmas and New Year is the absence of Brexit negotiations. The seemingly interminable rows between Government and Opposition parties have been temporarily suspended, whilst talks between the EU and European Union don’t restart for several weeks. That said, the Chancellor is being pressed to publish documents after he told the Treasury select committee earlier this month that the government had “modelled and analysed a wide range of potential alternative structures between the European Union and the United Kingdom”.
It is to be hoped any documents are more informative than the so-called sectoral studies which the Minister for Exiting the European Union published just before Christmas. As economic analysis, they were utterly useless. For comedy value, they were wonderful. On fishing, for example, we learned that, “As an island nation, the UK has been dependent on the sea for its trade and defence throughout history, and strong traditions of seafaring can be traced back hundreds of years… There is a concentration of activity in coastal towns.”
We’ll leave our readers to reflect upon this insight, and to wonder where else, other than coastal towns, a fishing industry might be based…
The pound opens in North America this Wednesday morning at USD1.3415, EUR1.1280 and CAD1.6950.