For the past two weeks the Pound has been relatively stable against the Euro at around £1 = €1.147 to $1.157. These are still not good rates but the stories we heard about the Pound being at or below parity with the Euro have gone away at least for the foreseeable future.
What happened was that the Trump victory shook the world’s faith in the US economy, the big losses were on the Aisan markets but that went around the world.
The Brexit campaign was won on promising something for nothing. By stopping EU migration you would be able to get school places for your children, doctors appointments and the hospitals would not be over flowing, there would be enough social housing for everyone who needs it and all that money we are paying into the EU would be spent here in the UK. All of the UK’s problems solved and it won’t cost you a penny.
Trumps campaign was won on promising something for nothing. The mexicans will be forced to pay for the wall. Scrapping trade deals that take jobs away from American workers. Bringing jobs back to the USA and so on. All of America’s problems solved and it won’t cost you a cent.
Traditional politicians have to cost their policies and they are subject to scrutiny but if of course the person doing the ‘selling’ isn’t elected like the leave campaigner or even a presidential candidate, just someone saying what they would ‘like to do then they can say anything they like.
So with more anti EU politicians taking heart from the Brexit vote and the ‘something for nothing’ ideology we are seeing a resurgence of far right political parties. It is always easier to blame foreigners for the problems at home and xeno phobia is almost a byword for the far right.
The point of it all is that this movement has improved the strength of the Pound as there are looming european elections in France, German and Portugal coming in 2017. How long this upswing will last I do not know. I personally think that if Article 50 is activated in March then that will create another mini crash in the Pound just like when Theresa May announced her intentions and gave that March deadline. Either way, right now it looks like people going away for Christmas or shortly after for the skiing season may be getting better value than I had previously thought.