• About Us
  • Authors
  • Currency Charts
  • Live Exchange Rates
  • Contact Us

Exchange Rate Forecast

Exchange rate forecasts and foreign currency news

  • British Sterling
  • Euro
  • US Dollar
  • Australian Dollar
  • Canadian Dollar
  • Brexit News
You are here: Home / British Sterling / What we’ve learnt from Brexit so far

What we’ve learnt from Brexit so far

July 26, 2016 by Rob Lloyd

What we’ve learnt from Brexit so far
  • Sterling likely to weaken again
  • Brexit unlikely to happen until at least 2019
  • UK must choose between soft or hard Brexit

the impact of brexitBrexit as far, has seen many twists and turns since the announcement a month ago, and whilst the dust settles on Westminster, the rest of the World watches with anticipation as the UK prepares its “exit” from the European Union.

With immigration being the hot topic surrounding Brexit, Europe has seen in recent days’ evidence of why many disagree with the concept of free movement of people. The attacks in France and Germany are some of the major events of the last 7 days, only today more attacks happened in the quiet area of Northern Normandy, resulting in a priest losing his life during a ceremony.

Coming back to the UK, the first economic releases since the historic vote have begun dripping through, and what we have seen so far points towards economic contraction. What does this mean for Pound Sterling?

Pound likely to weaken further

Investors are looking for any signs to sell up in the event the UK shows signs of a recession, data releases are therefore far more impactful on Sterling than they would have been if the UK opted to remain in the EU. Retail sales and PMI figures although preliminary, are the first economic releases to hit the UK post-Brexit which point towards economic contraction.
Tomorrow’s GDP figures, if negative, will most likely impact the Bank of England’s decision in its next interest rate decision in August. A rate cut could push Sterling lower down the chain.

Brexit means Brexit

Echoing Theresa May’s “Brexit means Brexit” gives little to reassure what Brexit actually means, or when it will occur. Will the UK take the soft approach and except lesser membership from the EU in exchange for free trade? Or will the UK close its borders entirely and look to set up free trade agreements with other nations?

Either way, until certainty is restored, businesses and consumers alike are not willing to spend, and this will have a knock on effect on growth.
Those holding Sterling in the hopes of a miracle, it’s likely Brexit won’t happen until at least 2019. With so much at stake, making a transfer now could well be the appropriate option.

Filed Under: British Sterling Tagged With: Brexit, EU Referendum, GBPEUR, interest rates, Mark Carney, Pound Sterling weakness

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

About Rob Lloyd

Robert brings with him a wealth of knowledge on what is impacting exchange rates, especially around the subject of the EU Referendum and the implications for Sterling and Euro exchange rates.

Recent Posts

  • Sterling finds support but unlikely to make any significant impact in the coming days May 9, 2018
  • US Dollar hits 5 month high against Sterling May 2, 2018
  • Sterling exchange rates at the mercy of political developments May 1, 2018
  • Pound weakens as political uncertainty once again raises its head May 1, 2018
  • Will Mario Draghi’s speech impact GBP/EUR? April 26, 2018

Live Exchange Rates

Archives




Copyright © 2021 — Currency.co.uk • All rights reserved. • Exchange Rate Forecasts • Privacy Policy •

We use cookies to ensure that we give you the best experience on our website. By using this site you agree to receiving cookies.I agreeRead Privacy Policy