The Referendum is now over, the UK will be withdrawing their membership from the EU – dates are yet to be confirmed.
The Pound slumped 11% at the start of the trading day whilst investors try to make sense of what’s yet to come.
And this is only the beginning, Boris Johnson’s speech caused the Pound to fall, Nicola Sturgeon’s talk regarding a second Scottish Referendum caused further downtrend.
So what’s next for the UK? How will this impact the Pound? With so much uncertainty ahead, with so many ifs and buts, it’s difficult to predict the long term implications of today’s vote.
If economists, the BoE, business and Financial leaders are all correct, the UK’s economy could be negatively impacted by a Brexit.
What deal the UK get with the EU will impact the Pound, which is looking as if it will be worse than our current arrangements, this of course, could impact trade, employment and thus, inflation. And to add to this, David Cameron resigned in the wake of the results which puts Boris Johnson up as the next potential Prime Minister.
As it stands, GBPAUD exchange rates are in the mid 1.80’s, a low but certainly not a major low as witnessed in 2012 and 2013. The Pound has much more room for weakness and I therefore suggest getting in touch with me if you have an Aussie Dollar requirement. You can email me at [email protected].