UK Pound Continues to Struggle on Brexit Fallout

Even though the UK economy hasn’t seen dramatically weak results since the Brexit vote, there are expectations that things could change in the coming months and years leading up to the actual “divorce” from the eurozone. Right now, comments from an economist are weighing on the sterling.

The UK pound was struggling prior to the Brexit vote as the sluggish economy worked to move forward. Following the Brexit vote, though, the sterling has struggled even more. Some of the UK data hasn’t been too bad, but, according to Bank of America Merrill Lynch economist Ethan Harris, not all data is created equal.
The expectation is that there will be some weak data coming forward, but that it won’t be particularly bad. However, as the issue moves forward and the date for actually leaving the European Union looms, there are expectations that economic data will worsen, and the sterling’s performance will follow suit. For now, the pound is mostly lower, but it hasn’t dropped as much as some think it could in the future.
At 14:48 GMT GBP/USD is down to 1.3077 from the open at 1.3111. EUR/GBP is up to 0.8541 from the open at 0.8425. GBP/JPY is also lower, dropping to 133.64 from the open at 133.84.

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