A note on Brexit risks for sterling, not to doom and gloom this one
Its via Comerz, dated Friday (bolding mine):
the EU Commission has simply taken stock and come to the conclusion that it will be impossible to reach anything else than a trade agreement (similar to the one signed with South Korea or Canada) due to the "red lines" the Brits have drawn in their hubris.
- It seems difficult to imagine that the red lines will be moved again considering the revolt of the "Brexiteers" amongst the Tories who would prefer to leave today rather than tomorrow - regardless of the conditions.
The sun will continue to rise above the British Isles.
- An economic collapse is not going to happen,
- but maybe the UK economy will enter a slower growth path.
- That is possible in the absence of a weak currency.
- The risks for Sterling "only" consist of the market losing patience and Sterling then descending into a depreciation spiral. The likelihood of a scenario of this nature is quite low, but it is not zero.
