Here’s my very quick take on UK’s vote to leave EU.
I think a lot of voters felt very patronised by the political ‘elite’ of UK, EU and further afield over this subject. “Project Fear” inasmuch as it existed therefore probably backfired.
- It won’t be the financial cataclysm George Osborne suggested — weaker GBP great for exporters, and might make consumers think twice about some of their purchasing.
- There will be no emergency budget, and NHS spending won’t be slashed.
- It’s a good thing for EU as it will trigger some much-needed re-thinking of the whole ‘European Project’ in order to head off Czech, Netherlands and others that might be next to leave.
- Trade between UK & EU will barely be affected – UK will continue to buy a lot of EU’s exports; unless of course EU makes it hard for UK to export its own goods back to EU by raising tariffs. Nobody wants a trade war.
I’m buying GBPUSD at $1.33