Chart of the week: sterling’s sea of troubles

Sterling slipped to a two-year low against the greenback this week, and remains around 12% below its pre-referendum level.

956_COTW-1

Sterling slipped to a two-year low against the greenback this week; it remains around 12% below its pre-referendum level. A strong labour market report should have provided support, but the good economic news was eclipsed by the growing possibility of a no-deal Brexit after both Jeremy Hunt and Boris Johnson said they wanted to ditch the Irish backstop.

A general election and a Corbyn government could follow Brexit, which is another key reason the pound is weak. The decline in the pound should really have started to close our external deficit by now, says David Smith in The Sunday Times. Yet the trade deficit in goods widened in the year to May, and the overall current-account shortfall climbed to 5.6% of GDP in the first quarter.

Viewpoint

David Rosenberg, Gluskin Sheff

Recommended

The charts that matter: China upsets cryptocurrency markets
Global Economy

The charts that matter: China upsets cryptocurrency markets

Bitcoin slid again this week after China declared all cryptocurrency transactions illegal. Here’s what’s happened to the charts that matter most to th…
25 Sep 2021
The charts that matter: more pain for goldbugs
Economy

The charts that matter: more pain for goldbugs

Gold investors saw more disappointment this week as the yellow metal took a tumble. Here’s what’s happened to the charts that matter most to the globa…
18 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021
The charts that matter: gold and bitcoin both slide
Global Economy

The charts that matter: gold and bitcoin both slide

Gold and its modern counterpart, bitcoin, both sold off this week. Here’s what’s happened to the charts that matter most to the global economy.
11 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021