After yesterdays steep fall Sterling has stabilised against the Dollar and made small gains. The markets hate uncertainty and although the picture is still as clear as mud at least Mrs May’s initial flawed plan is off the table. Although there has been a lot of fixation about the exchange rate it has traditionally been volatile – back in April 1972 you could have briefly had $2.61 for a pound while in 1985 Sterling fall to a low of $1.08. The UK economy survived both and there is no reason to expect things to be different this time around. The average Sterling Dollar rate since 31-12-2010 has been $1.473061 according to Macrotrends. Currently, it is about 12.5% below its average.
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BBC News – Business
