Market jitters and Brexit uncertainty magnifies the chance of a flash crash

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Series Details 10.10.16
Publication Date 10/10/2016
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In the uncertain atmosphere of what Brexit actually means, the pound is therefore being driven downward by politics, as much as economics. How low it will drop is tricky to predict. The only thing that is certain is that its fate will remain extremely sensitive to the statements and emotions of both British and EU leaders on how the Brexit process unfolds.

If currencies are an expression of national sovereignty, they also epitomise the limits of such sovereignty in an open economy. The value of the currency is clearly correlated to Brexit and has been consistently indicating uneasiness about what looms ahead.

Source Link Link to Main Source http://theconversation.com/market-jitters-and-brexit-uncertainty-magnifies-the-chance-of-a-flash-crash-66699
Related Links
ESO: In Focus: Brexit - The United Kingdom and the European Union http://www.europeansources.info/record/brexit-the-united-kingdom-and-the-european-union/
ESO: Background information: Forget Brussels, Brexit’s toughest battleground is the WTO http://www.europeansources.info/record/forget-brussels-brexits-toughest-battleground-is-the-wto/
The Guardian, 09.10.16: Beyond the flash crash lies a simple truth: Brexit weakens the pound https://www.theguardian.com/business/2016/oct/09/brexit-weakens-pound-beyond-flash-crash-simple-truth
Chatham House: Expert Comment, 14.10.16: Fall in Pound Shows Sovereignty’s Limits https://www.chathamhouse.org/expert/comment/fall-pound-shows-sovereignty-s-limits
CapX, 12.10.16: Inflation, not Brexit, should be worrying our policy makers http://capx.co/inflation-not-brexit-should-be-worrying-our-policy-makers/
CapX: Tag: Brexit http://capx.co/category/brexit/
In Facts, 14.10.16: 6 effects of Brexit on the economy this week https://infacts.org/6-effects-brexit-economy-week/
The Economist, 18.10.16: Some Britons will suffer from a weak pound more than others http://www.economist.com/news/britain/21708904-effect-sterling-inflation-some-britons-will-suffer-weak-pound-more-others
Social Europe, 20.10.16: Europe’s Trade Policy: Can a Phoenix Rise From the Ashes? https://www.socialeurope.eu/2016/10/europes-trade-policy-can-phoenix-rise-ashes/
NIER, No.238, November 2016: The UK Economy - forecast summary http://www.niesr.ac.uk/publications/uk-economy-forecast-summary#.WBr8ksnw-2E

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