Brexit One Year On: Political Chaos, Pounded Currency, & Pressured Consumers

Jon Politics

It is exactly one year since the UK held the historic referendum vote on EU membership. As Deutsche Bank’s Jim Reid notes, whether you think that has passed quickly or not probably depends on if you’re a Sterling FX trader, in which case it’s more than likely been a long year. With today being the anniversary we thought we would see how assets have performed over the past year since the vote…
First and foremost the standout is the currency has been pounded with a huge decline for Sterling versus both the Dollar (-15%) and Euro (-13%). That massive move in the currency has helped to prop up local currency returns however and we’ve seen the FTSE 100 surge an impressive +22% (clearly boosted by big UK exporters) while GBP credit has returned between +8% and +15% and Gilts have returned +7%.

This post was published at Zero Hedge on Jun 23, 2017.