How Low Can Sterling Go – and How to Make Money on That!

In this weekend’s US print edition of the Financial Times, the FT Big Read was on “Brexit and Sterling“.  It was a great article.  More interesting was a commente from Mohamad El Erian (of whom I am a fan).  Here is the quote: “If the UK secures a comprehensive new free trade agreement for goods and services, current levels [dollars to Sterling of $1.29) will look very cheap.  If, however, such an arrangement lags behind or is not comprehensive enough, then currency levels would be seen as the new normal for sterling.”

There you have it – just what I called out with my “leave” vote.  Cool and rational heads need to prevail on both sides of the Channel.  Let’s see how European the EU team will really be… 

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