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Currency Traders Badly Hit by Brexit

The lawmakers of UK feel that Brexit, which was suggested and passed by Prime Minister of UK Theresa May, only caused the country more loss. The only question now is how much loss they would suffer. A renowned analyst from CMC markets, Jochen Stanzl, said that following this event, the value of pound would severely fall from $1.28 to $1.24. This would bring the currency value back to its low position in the early days of 2017.

Due to the increased chances of volatility of the exchange rates, TransferWise, a money transferring company in the UK, would no longer allow users to take more than $12,840 in or out of the UK. However Kit Juckes, Societe Generale Strategist, confirmed that the news is not that bad for pound yet. However, if May’s idea of Brexit does not occur in the very first place, Brexit would either be delayed or cancelled off entirely. In that case, pound would retain its value.

The vote of Brexit either for or against is not being able to predict easily. Senior economist from Berenberg, Kallum Pickering, commented that different branches of the Parliament have been fighting to gain an upper hand on Brexit. Uncertainty has been hovering over the entire UK. Britain has been dated to leave European Union towards the end of March. By that time, it would be quite unlikely that May’s deal is revised.

Circumstances which are likely to occur from that are collapse of the bloc without caring for the deal. There is also a possibility that May’s government could be broken and general election could be held. Whatever the situation might be, currency traders would face a serious consequence. Stanzl commented that everything is in a dilemma now. Neither can it be advised to increase nor to decrease the value of pound.

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