|USD/NGN yesterday’s close||353|
|Please get in touch with us if you need the latest USD/NGN price|
FIRSTLY APOLOGIES FOR NOT WRITING THIS COMMENT OVER THE PAST WEEK
So here we are, the electorate has voted with their heads (rather than their heart) and we are exiting the EU. Shameful, sad, disappointing, upsetting, wrong, and catastrophic.
ParityFX (the FED, BoE, ECB, IMF, World Bank, heavy weight corporates) was not scaremongering when we said the GBP will collapse if LEAVE wins. As things stand the GBP has dropped 13.50% vs the USD and 9.75% vs the EUR…and counting. We have been asked several times if this is likely to continue and the simple answer is yes, we are going to suffer more. The Chancellor has given up on his promise to have a budget surplus in 2020 and has indicated that he will be looking to cut corporation tax to 15% (no timeline) to continue attracting business to the UK (good luck with that). The BoE has hinted they are likely to CUT UK interest rates (by 0.25%) at their meeting at either the 14th July/04 August meetings and pump whatever liquidity is required into the market. I am sorry to say, that despite the best efforts by the Chancellor and BoE, the UK economy is likely to lose between 1.50-2.00% points on our GDP. All the excellent and hard work over the past 8 years has just been flushed down the drain. From being one of the top 3 fastest growing economies (amongst the G20) we are now BELOW GREECE!!! And that my friend says it all.
I cannot for the life of me explain what people were thinking. In fact we know that what swayed the vote, the LEAVE vote exercised by the over 65’s. Thank a lot. What about the “new” generation, did they not care about their future…obviously not. Chancellor Merkel told the Swiss yesterday that if they want to remain in the EU they need to allow the free movement of labour. The Swiss allowing free movement of labour now that will be something to behold.
If the UK think they will be able to muscle the EU into entering into a favourable trade conditions and at the same time limit free movement of people, then we are in for a shocking surprise. Already the 2 big LEAVE stalwarts (Johnson and Farage) have quit leaving someone else to pick up the baton and deal with the EU. It is like getting away with a drive by shooting. It is disgraceful. We should have ANOTHER REFERENDUM NOW and see how the electorate vote after all the lies and departures. These 2 should never be allowed to hold a public office ever again. Do they care, not on your life.
If fact as I write this comment the GBP has fallen another 50 pips at the open as traders batter the GBP. I really cannot see how we are going to come back from this. I think the consequences will continue to reverberate globally and the big winner ultimately will be the USD which is now likely to hit PARITY vs the EUR and wait for it, there is now talk the GBP too will hit PARITY vs the USD. While this all means UK exporters will receive more GBP for goods priced in USD and EUR, importers will be heavily hit and I am in no doubt looking to see prices start to rise as price hikes are passed onto the consumer. So all you LEAVE voters, WELL DONE your income just collapsed. Furthermore it would not surprise me to hear the Chancellor move the pension age even further out and cut benefits. After all we are heading back to austerity.
I cannot begin to tell you has sad I am right now. I was so confident people would vote REMAIN and continue to enjoy the healthy lifestyle we have been accustomed to over the past few years as business grows. Now I am afraid I am worried, VERY worried. I truly do not know how the EU and the rest of the world will deal with the UK (if we can call it that after Scotland call another referendum and this time vote to leave and join the EU).
So BREXIT, CAMERONEXIT, ENGLANDEXIT, JOHNSONEXIT, FARAGEEXIT, LABOURJOKEXIT, CONSERVATIVESHOPEEXIT, GBPUSDEXIT, GBPEUREXIT and finally MY EXIT
Have a good day and enjoy your summer holiday in the USA, Europe, or anywhere else foreign – it just cost you over 10% MORE. Nice!!!
Any financial promotion contained herein has been issued and approved by ParityFX Plc (“ParityFX”); a firm authorised and regulated by the Financial Conduct Authority (“FCA”) as a Payment Services Institution with registration number 606416. It is for informational purposes and is not an official confirmation of terms. It is not guaranteed as to accuracy, nor is it a complete statement of the financial products or markets referred to.
Opinions expressed are subject to change without notice and may differ or be contrary to the opinions or recommendations of ParityFX. Unless stated specifically otherwise, this is not a recommendation, offer or solicitation to buy or sell and any prices or quotations contained herein are indicative only. To the extent permitted by law, ParityFX does not accept any liability arising from the use of this communication.
Follow our tweets @parityfxplc
Follow us on LinkedIn ParityFX Plc; and at www.parityfx.com