Sterling slides to $1.24, weakest level vs dollar since April 2017.
— Jamie McGeever (@ReutersJamie) July 16, 2019
If you think confidence in a country's economic, financial and political outlook is reflected in its exchange rate... pic.twitter.com/RMbqmHEibH
The Pound Sterling went below $1.24 yesterday, for the first time since April 2017, as no-deal Brexit fears unsettled international investors once again.
The change in confidence in the Pound comes after Monday night’s Conservative Party leadership debate between Boris Johnson and Jeremy Hunt; both of whom stated that they disliked the Irish backstop proposal from the EU and that they would prefer a Hard Brexit.
Sterling’s one cent fall puts the Pound at its weakest level since just before Theresa May called the last general election in the UK. The Pound also hit a new six-month low against the Euro of €1.107, which itself is down against the US Dollar as Germany reports weaker-than-predicted economic sentiment and concerns internally about its manufacturing industry; concerns which are worrying investors who have typically been very confident about western Europe’s powerhouse.
Gold, which is enjoying a strong 2019, rose domestically in the UK courtesy of the weaker Pound. The gold price climbed from £1,130 per ounce in the early hours of Tuesday morning before peaking at £1,139 per ounce early yesterday afternoon. The price fell back to £1,132 per ounce as the US markets began trading, and gold is presently back at £1,130 per ounce this afternoon.
Pound sterling after the two UK would-be PMs said they would ditch the Irish backstop. Keep up the good work. pic.twitter.com/1tHONFJRJG
— Pierre Briançon (@pierrebri) July 16, 2019
Conservative Party members are due to vote and elect their new leader at the end of the month, with the victor replacing Theresa May as the Prime Minister. They will then have virtually no time before Parliament’s summer recess, and will return in September with just a few weeks before the Brexit deadline at Halloween.