We believe that the Brexit can make the pound a safe haven currency like the Swiss franc and the dollar. Not only:
Large current-account deficit is one of U.K.’s key economic vulnerabilities, ans a “leave” vote could increase risk premia in GBP assets; But in event of Brexit, “referendum-itis” will be catching from Catalonia to Netherlands, in France could change the outcome of next year’s presidential election: and this will probably be the end of the euro. For these reasons we believe that the alternative currencies to the euro could become haven
Large current-account deficit is one of U.K.’s key economic vulnerabilities, ans a “leave” vote could increase risk premia in GBP assets; But in event of Brexit, “referendum-itis” will be catching from Catalonia to Netherlands, in France could change the outcome of next year’s presidential election: and this will probably be the end of the euro. For these reasons we believe that the alternative currencies to the euro could become haven
