Brexit-turbulence: weakness of the British pound

The Brexit-Drama in the United Kingdom uses the pound under pressure: in The late afternoon, the exchange rate of the British currency in Relation to against the Dollar fell temporarily to 1.7 per cent, the lowest level since one and a half years. Against the Euro the pound lost 1.5 percent of its value.

Marcus Theurer

economic correspondent based in London.

F. A. Z.

To strong price losses in trading major currencies rather rare. Also, the leading index of the London share market’s FTSE 100 turned negative.

the trigger for the escape of the foreign exchange dealers from the pound to the announcement of the British Prime Minister, Theresa May, to postpone the vote on the controversial exit agreement with the European Union. The head of government admitted, in a speech to the house of Commons, that for the planned Brexit Deal is currently not a parliamentary majority in the UK. Without the consent of the members of the exit agreement cannot enter into force.

In the financial markets is the fear that it comes at the end of March to be a particularly economically harmful disordered Brexit is growing, therefore, without transitional rules for important trade relations with the EU States. In the bond market, the yield on fell to a ten-year British government bonds and the increasing economic risks of leaving the EU will make a key interest rate increase by the Bank of England from the point of view of the retailer for the foreseeable future less likely. On the stock market, the paper of the British airline lost Easyjet more than 5 percent of their value. Real estate values also were under pressure.