Pound takes another battering after Queen approves Parliament suspension

The “already battered pound” has taken yet another hit as the Queen approves Prime Minister Boris Johnson’s request to suspend Parliament from mid-September.

Sterling is down more than 0.5 per cent against both the euro and the US dollar as a result of the political manoeuvring, prompting deVere Group CEO and founder Nigel Green to urge those with UK financial assets to protect their wealth.

Green suggested that UK investors – including UK pensions, bonds and sizable holdings of sterling – consider international options to protect against the fall of sterling, highlighting that the pound is likely to “remain weak for several years” should the UK leave the bloc without a deal.

“The pressure will remain on for the pound for the foreseeable future as the possibility of a no-deal Brexit increases. Should the UK leave with no-deal, the pound is likely to remain weak for several years until the country and the bloc readjusts,” he said.

The deVere CEO also noted that the likelihood of a general election is weighing on the currency and should a Corbyn-led Labour party win, there will be “even more longer-term bad news” for the pound, adding: “His anti-business rhetoric, and high tax and low-profit policies would lead to a considerable and sustained selling of the pound.”

Furthermore, following the approval of Johnson’s planned Parliament suspension, the possibility of a general strike has increased, along with the chances of mass protests and civil disobedience – all while the UK economy is potentially on the brink of a harmful recession.

Green continued: “Looking at the nose-diving pound and a looming UK recession, the outlook is somewhat bleak in Britain. Those with UK financial assets - including UK pensions, bonds and sizeable holdings of sterling – should now perhaps consider the available international options to protect their wealth.”

Earlier on Wednesday, the deVere CEO stated that the Prime Minister’s decision to suspend Parliament will have “far-reaching economic effects”, many of which will not be known for years to come.

“Those who are serious about building and safeguarding their assets should explore legitimate overseas options as the UK moves into an unprecedented crisis,” he concluded.

Also commenting on the future of the pound, WeSwap chief marketing officer Rob Stross said: "It’s difficult to predict how the pound will fare throughout the remainder of summer, however, as the pound’s value has continually fallen and risen in the past few months, it pays to be aware of any upcoming political events which could affect the pound’s value."

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