Sterling is regarded as 'chronically undervalued' by the traders, they know the underlaying strength of the UK economy, obviously there will be volatility during the Brexit leave process.
If they viewed it as chronically undervalued then why have they been shorting the life out of it for months?
Have you ever moved perishables and goods for just in time factory deliveries, overnight warehouse picks from EU storage facilities? Thought not....
Because they make their money dealing with short term fluctuations, nothing to do with long term predictions.
I have no experience in these goods but this is only a percentage of the trade. Hopefully any potential problems will increase the amount grown in the UK.
I can only report what they say. I agree with them, the long term value of GBP will be much higher against both USD and Euro.
It's a large proportion of the trade though mate. The Customs union has in essence extended the UK's boundary to cover most of Europe, and a large proportion of the 'imports' arriving here are 24hr deliveries that are shipped in the same way that they would be from a UK distribution centre.
His view is virtually identical to mine, and he doesn't answer the question in the headline either....
Most thought it was overvalued before the brexit vote, so I think 'chronically' is pushing it, it's below where it should be though, and we all know why.....
All you can do is wait nearer the date, have some early nights and a few Valium. As I'm long retired and just look forward to the dividends rolling in, I'm fairly relaxed about it. It will be storm in a teacup anyway, don't panic.
I'll be cashing out of my portfolio way before D day and I'll be shorting the life out of anything that relies on cross channel traffic.... The repo house market will yield a few bargains in the coming years I reckon.........
I would say the opposite, investing in freight forwarders now could be excellent, it looks a massive growth area.
