Three years of Brexit and after years of debate and campaigning England remains at an impasse. The experts from WorldFirst discuss Brexit and its far-reaching implications for the Sterling and the global economy.

Three years of Brexit – A decision scheduled to take no more than two years from the trigger of article 50. Don’t forget, this doesn’t consider the two years of debating and campaigning that led to the vote on June 23, 2016. The ordeal and uncertainty may reach the next decade before this chapter closes.

Why the uncertainty?

Brexit has reshaped the process of how we view financial markets and more importantly, how financial markets operate. Markets are supposed to be data dependent. It’s what drives currencies. Currency markets react to the data that is provided to them – labour conditions, inflation, growth, sector growth, national debt etc. Also known as cyclical FX. A currency profits when economic data is favourable, when investor sentiment is optimistic and central bank pursues a relatively less accommodative monetary policy. Throw a major political event such as Brexit into the cycle; you jumble the cyclical element of what we often know and understand. Politics has emerged as the main driving force of financial markets in today’s world. A double whammy with US-China trade wars. It seems that markets today have forgotten the data, which was once the driving blocks and key indicators of the market.

The politics

UK politics has attracted much global attention. The Conservative Party had somewhat disowned ex-PM Theresa May from a very early stage and the uphill battle became evident over time. Not only did May have to contest her daily battles with Labour, but she had begun to battle with her own party. Cracks really started to form. The Democratic Unionist Party had held the PM over a barrel, holding the crucial votes needed to secure a majority. The deal itself was not an easy task to execute. It took three meaningful votes for the bill to have a chance of passing the houses of parliament, never mind making it to Brussels. Ms May’s cards were marked from the beginning and her tenure came to a swift end in 2019.

Enter Mr Boris Johnson. Johnson was seen to carry a certain power within the houses of Parliament; mainly from aristocratic benchers he had gained elegance from during his tenure as Mayor of London. Johnson’s approach of ruling with an ‘Iron fist’ did not receive the warm welcome he had anticipated. He received a backlash of criticism from his opposition and his own party. The European Union has since agreed on an extension of Brexit for up to three months on 28 October. A General Election on 12 December in a bid to end Britain’s “political paralysis” will follow.

Sterling against the World

Pre-Brexit, many regarded the Pound with a premium. In the years post financial crisis, Sterling regained most of its losses against the US Dollar, reaching over 1.71 in July 2014. To put this into context, that’s a 25% difference in five years. Since June 2016, on the eve of UK’s decision to leave the EU, the Sterling has depreciated against the Singapore dollar by almost 11% at the time of this writing. At its low, it was down over 16% to date.

 What could the future look like?

When assessing the outlook of Sterling, it is important to recall where it came from. Pre 2016, GBP/SGD traded as high as 2.21, with rates hardly as low as 1.93. If we compare that to today’s rate of 1.75, that’s a loss of more than 9.6% in value, depending on your vantage point. How bad is this? Well if we compare that to the recent low of 1.65, which then showed a loss of 14.4%, the 9.6% loss seems like a cakewalk. But can we truly say the worst is over?

One thing is for sure, we can never be too sure of what lies ahead. No one, not even the best Sterling traders can predict what the erratic currency will react to next. Markets move with data and sentiment, driven by news now dominated by Brexit/Boris headlines. In a way, this helps post-rationalizing market watchers to make sense of the price trend. In coming weeks as UK’s future begins to unravel, investors may start to feel more comfortable, even optimistic, which may result in the strengthening of the Pound.

Will Sterling ever recoup its losses to pre-Brexit levels? It’s impossible to tell, but current discussions is showing progress, reinstating confidence in the Sterling traders that the future in one of the oldest currencies and economies has plenty left in the bag.

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The Australian moving season is just around the corner. Every year between December and February, students, families, and single professionals will begin their relocation journey – either back home, to a new job or to start school.

Decisions have to be made on what to pack and move and often the deciding factor is based on allowances, budgets and space. If you’re about to embark on this new adventure, take a deep breath and take control. Moving internationally can be a rewarding experience, providing opportunities to declutter and start afresh in 2020. If you’ve decided to move with international moving companies, most qualified relocation companies can handle shipments of any size – you’re already off to great start!

Confirm your international mover at least 1-2 months in advance to ensure you have your preferred moving dates locked in. Movement to Australia is very busy at this time of the year, causing port congestion, delays at customs and often resulting in unforeseen charges due to storage charges over the year-end holiday period.

Once you have this in place, use the time to start planning and decluttering. This is especially important if you have committed to a certain shipping volume. You want to make sure that you have done your sorting before the moving crew comes in. Packing teams are very organised and will work with you to achieve your objectives, but it’s best to avoid delays as that can potentially add to your budget.

Here are some quick tips to get you prepared for your moving day:

1. Go to bed early as the team will arrive between 9-9.30am.
2. If you have young kids, it is best that they are at a play date so that you can focus on directing the supervisor of the team.
3. Ensure that all small, shiny, expensive and easy to reach items are out of sight and out of mind.
4. Avoid arranging for other services such as a contractors and cleaning services on the same day as that can interfere with the flow of movement and accountability for unforeseen circumstances.
5. Clear out your fridge and freezer as early as possible.
6. For countries like Australia, remember that their custom authorities and laws are one of the strictest in the world. For more information please visit BICON – Australian Biosecurity Import Conditions
7. If you plan to pack up own personal belongings, do it in advance and do not seal the boxes.
8. Confirm your labelling plan in advance with your relocation services provider to ensure consistency.
9. Ensure that items like air-conditioning controllers and keys belonging to the landlord are put safely away. Same with television set up boxes that need to be returned.
10. Start the day with a good breakfast and a positive mindset and remember not to sweat the small stuff.

For more information, a consultation or an international moving quote contact amy@sirmove.com or talk2us@sirmove.com, ring 65 6534 7345 or visit www.sirmove.com/moving-to-australia

SIR Move also offers Delivery for Smaller Shipments. Visit https://www.sirmove.com/moove-my-box