Nothing Bad Happened on Tuesday, and the Pound Dropped Two Percent

One of our co-writers also writes for Evolve Politics, one of the bigger emerging political news sites. This first appeared there.
British political discussion since June 23rd has been dominated by the effect Brexit will have on the economy, and Tuesday’s stock market reaction has given us reason to be very fearful.
The exchange rate of the pound against the dollar dropped from just over $1.23 per £1 at 13:15 UTC on Tuesday, to hovering just above $1.21 per £1 between 17:10 and 21:40.
value-of-pound-against-dollar-2016-week

Tuesday’s headlines did include figures on the amount of tax revenue expected to be lost when the UK does exit the EU. While the £66 billion figure made a lot of headlines, it won’t have been newsworthy to the majority of professional investors – as Duncan Weldon, Head of Research at the Resolution Group investment firm has pointed out, this was a rehash of the pre-vote Treasury report, and as a result “shouldn’t move currency that much”.

Read the full article at Evolve Politics

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