Tej Parikh, a Wikistrat Researcher and global policy analyst and journalist, argues that the pound will remain weak for the next two years, as Britain negotiates its exit from the EU. There may be short-term trading opportunities, though.
Andrew K.P. Leung, a Wikistrat Senior Analyst and Chairman of Andrew Leung International Consultants Limited in Hong Kong, argues that the United Kingdom is between a rock and a hard place: It can’t start negotiating its exit from the European Union until it triggers Article 50, but when it triggers Article 50 it loses its leverage. Until that happens, Leung expects the pound will continue to fall and prices in Britain will rise.
Nicolas Lewkowicz, a Wikistrat Senior Analyst, predicts the British pound will continue to depreciate as a “hard” exit from the EU, implying loss of markets and investment, seems most likely.
Dr. Matthew Hurley, a Wikistrat Senior Analyst and Non-Resident Senior Fellow at the Mitchell Institute for Aerospace Studies, argues the pound’s future is grim. Brexit casts doubt on the United Kingdom’s willingness and ability to fulfill its commitments, he says: the basis of fiat currency.
Anurag Sinha, a Wikistrat Contributing Analyst and Founder of YourGlobal, argues that the pound is acting as a shock-absorber. He is not too worried about changes in its value in the short term. “It is far more important to observe the makings of the policy response to Brexit.”
With 52 percent of voters in the “Brexit” referendum in favor of leaving the EU, the world woke up last Friday to a new geopolitical reality which some have compared to the day after the fall of the Berlin Wall.
The vote rattled global stock markets, generating sharp declines in major indexes, with the price of gold and silver seeing dramatic increases.
At the same time, Eurosceptics and far-right parties across Europe welcomed the results, seeing a boon to their domestic political fortunes. Moscow seems to view the referendum as having a positive impact on its global position, anticipating a boon in relations with an EU now dominated by Germany.