Brexit and the British pound: it’s a matter of perspective

On the day of the famous British exit of the European Union, the poundfell almost 9% against the dollar. While remarkable for a one day slide, the British pound to dollar ratio remains within its recent trading range, and higher than six months ago where there was some strengthening, likely on speculation around the British vote. The graphs show the exchange rate for the British pound versus the dollar for 5 days, three months and one year currency levels. While the pound is certainly down over the five-day range, it is up in the three-month and then down over the one year period. The slide is much longer term in nature and reflects the general slowdown in the British and European economies, more so than the direct issue of Britain leaving the European Union. However, demographic transformations due to changes in policies such as immigration etc. resulting from the separation, and their effect on the economy, might effect  currency values in the long term. 

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