Sterling Flash Crash, No Surprise

Well sterling suddenly collapsed overnight ($1.2600/£1 to $1.1840/£1) and then recovered and has since then resumed it's downward trend established since Mrs May addressed the opening of the Conservative conference last week. It is quite clear to me that Brexit was a disastrous referendum result and the UK will pay a heavy price over the next 4 to 5 years and even decade. 

What makes the matters worse is that we have probably the most incompetent government team that I have ever seen. Mrs May is almost definitely a "closet Brexiteer" and she has put three incompetent people, namely Bojo, Liam Fox and David Davies in charge of the process. After Amber Rudd's disgraceful suggestion that companies be forced to publish the percentage of foreign workers they employ we have reached a new low in British politics.

There is no doubt in my mind that the looney right are headed to a "very hard Brexit" scenario and even our new WTO membership status needs to be clarified urgently. The only member of the team that seems to grasp the reality is Philip Hammond but he is surrounded by people that are really not up to the job. If I was a foreign investor, I too would stay well clear of the UK and the pound until some sanity starts to prevail and these incompetents are out of office. A 5 minute candle chart of the sterling flash crash is below:

(Click on image to enlarge)