The pound hit two-year lows due to the prospect of a Brexit without agreement

Thesterling ibra lost 0.42% past local noon as a result of fears of a not agree Brexitagitated by the new British Prime Minister Boris Johnson. The decline, which further reduces the losses recorded that day, could bring the British currency up. Its lowest value in two years.

Book he lost 0.8% – to 1.21 per dollar – After Johnson, the collaborators pointed out to international agencies that discussions with representatives of the European Union for a UK exit from the European bloc could not continue if the opportunity to discuss the separation agreement was possible. The British currency knew to be 1.5 dollars the dollar before the referendum on the exit of the European Union.

The losses of the British currency have transformed it into the most volatile currency of the Group of 10 over the last three months, according to data compiled by Bloomberg.

he The Brexit calendar has the departure date for October 31st of this year of the United Kingdom from the European bloc. This is not the first deadline that is reached and is postponed, but the new Prime Minister Johnson tried to convince that separation would occur that day, with or without agreement..

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The decision expected by most investors and economists, however, will disappoint President Donald Trump, who said yesterday via Twitter "a big reduction".

The exit without agreement this would imply that border controls between Europe and Great Britain might be needed again (insoluble problem in the case of Northern Ireland, as this would force the island to be divided or, worse, physically separated to the north of the UK), it would introduce serious disruptions in transport and trade and, among hundreds of other problems, this could change the daily lives of people to the point of making their phone tickets more expensive or canceling their driving record on the mainland. The blow to the economy would be of dimensions.

The British pound fell 4.61% against the US dollar so far this year. And the basics for new victims are just around the corner. The market is expecting Bank of England signals confirming future rate cuts. In fact the money market operates accordingly with a 60% probability of reducing rates in December.

Impact in Argentina

A Brexit and, in particular, a Brexit without agreement can affect emerging markets and even feel in Argentina.

he June 24, 2016, the day after the amazing referendum In which the British chose to leave the European Union, the search for a safe haven from investors around the world caused skidding of all emerging currencies. The Argentine peso was no exception that day, registering a 3.53% decline against the dollar.

"Prime Minister Johnson has gotten rid of a lot of things, it's very hard to believe it, but at least this time he said that on October 31 he was leaving the UK with or without and now market prices seem to be adjusting, "said Luis Palma Cané, international finance specialist.

"An agreed exit, as bad as it may be, can have a lesser impact than a Brexit without agreement, because it generates uncertainty, the worst enemy of the markets, which causes the fall of the market. risk appetite globally, "added Palma Cané. "Less risk appetite means that positions in the riskiest markets are reduced and Argentina is certainly among the first on this list. a brexit without agreement will feel"he said.