Institution: The British pound is feeling the long-term structural impact of Brexit

Golden Ten Data reported on June 15 that George Vessey from Convera stated in a report that the 2016 Brexit referendum had a lasting impact on the pound. Since Brexit, the pound has averaged 1.16 against the euro, lower than the previous decade’s 1.27, while the average level against the US dollar has fallen from 1.60 to 1.30. Brexit also led to a structural shift in the pound’s market behavior. The pound is now more sensitive to global risk appetite. It has also become more expensive to purchase protection measures against potential price fluctuations of the pound, and the market continues to show a downward tendency for the currency. “As we look back over the decade since the UK decided to leave the EU, it is clear that the pound has undergone a structural transformation.”