Brexit And the struggle starts for the British Pound Sterling

Overall, there a bucket-load of ongoing uncertainty in the British economy right now, and this, unsurprisingly, is weighing down heavily on buyer sentiment towards the Pound.

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Pounds Sterling play

Pounds Sterling

(google)
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It seems like Britain - its economy actually - is starting to feel the brunt of the disastrous Brexit vote. The pound is currently at a thirty-year low.

With the near-immediate investor decline in confidence of what the UK economy has to offer, and the headline comments from the Bank of England (BoE) yesterday, Wednesday, July 6, 2016; that there is evidence that the risks highlighted to come with a positive Brexit vote are already emerging, it is not very hard to see why the Pound is struggling so much.

Appointment of successor to UK PM Cameron pushed back to Sept 9 play

Appointment of successor to UK PM Cameron pushed back to Sept 9

(Mirror)

 

Prices are also going higher and the uncertainty over who will take over from David Cameron as Prime Minister of the United Kingdom when he steps down in a couple of months puts forward the possibility of further economic declines.

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Another resultant effect is that, while the UK negotiates a lengthy, complete exit from the European Union (EU), Scotland could see it as an opportunity to call its own second referendum, and that would definitely hit the Pound hard.

Brexit uncertainty may pose threat to EU economy, Germany's Schaeuble says play

Brexit uncertainty may pose threat to EU economy, Germany's Schaeuble says

(Telegraph)

 

Overall, there a bucket-load of ongoing uncertainty in the British economy right now, and this, unsurprisingly, is weighing down heavily on buyer sentiment towards the Pound.

I hear there are reports of a second vote, since so many Britons now realize why leaving the EU is such a bad idea, and I hope that a better story emerges out of that for Britain. Otherwise, the British Pound Sterling is in for more tough times ahead.

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