GBP has dropped more than 8% against USD in the aftermath of Brexit vote. This is a serious concern and one should be alarmed if they trade US dollars.
Brexit 52% vote over 48% Bremain vote sent shockwaves in the International financial market on Friday. This marked an end to UK’s 43 years EU membership in a referendum that attracted a record 72% of the registered voters. The pound dropped more than 8% against the dollar in the early trading session while its Euro counterpart was down more than 7%. In the run up to the voting day, polls showed a tightly contested campaign too close to call with major pollsters showing a bias towards remain.
At 2100GMT the polling stations closed, YouGov polls showed remain with its nose ahead of leave by a 4 point lead at 52% remain Vs 48% leave. Another survey carried out by ComRes implied a 6 lead at 48% remain compared to 42% leave camp. At the end of the Friday trading session, assets worth over $10 trillion had been wiped out of FTSE benchmark as the yield on 10-year UK government bond fell below 1% for the first time in history as reported by Sky News.
It will take approximately two years for Britain to formally withdraw from the EU. Until 2007, there was no formal procedure for member states to withdraw from the EU. No member state has ever rescinded its EU membership even though the Lisbon treaty sets out the withdrawal procedures.
David Cameroon resigned after the vote, in The Guardian article “I was absolutely clear about my belief that Britain is stronger, safer and better off inside the EU. I made clear the referendum was about this, and this alone, not the future of any single politician, including myself.
-See more at: https://www.hiwayfx.com/forex-articles/us-dollar-aftermath-brexit-vote
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