Sometimes it’s just too confusing. The U.K. pound is sinking like a stone but many economic indicators are up. Supposedly investors are punishing the U.K. for pulling out of the euro zone thus increasing economic uncertainty.
The euro however is sailing along despite no resolution of the Greek crisis, immigration, terrorism, the precarious condition of the Italian banks, and relative weak economic data in many euro countries.
U.K. exporting industries are soaring on the back of weak currency while importers are suffering from higher costs.
There also doesn’t appear to be any economic uncertainty about the loss of the U.K. in the EU even though it was one of the few bright light countries.
I remember when sterling was virtually on par with the dollar and the euro was worth less than 90c.
I guess someone can always justify anything after the fact.
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