Pound could fall to all-time low of 1.30 vs US dollar as UK votes to leave EU: Oanda

SINGAPORE (June 24): Brexit it is. Official results of the UK Referendum are in, and some 52% has voted to Leave the European Union (EU).

Jeffrey Halley of Oanda predicts the British pound could fall to an all-time low of 1.30 against the US dollar in the weeks ahead. “The drop in the GBP will be steep as the market was pricing in a Remain result ahead of the vote,” he says. But the pound is likely to regain strength and stabilise in the months ahead as the market adjusts and new negotiations begin between the UK and the EU, a process which could take up to two years

“What’s not been priced in though, is the depreciation of the euro,” says Halley. “Brexit is the start of the unwinding of the EU. After this, Denmark and Sweden will definitely want to leave, as will some of the peripheral countries like Italy and Spain, which have suffered under the EU since the Global Financial Crisis.”

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