(Dan here) Quoted is a summary and link to New Deal democrat‘s post at XE.com on the pound sterling and Brexit impacting the US economy via Marketwatch:
The pound plunged early Friday as results from the U.K.’s referendum hit, but “since then the pound has gone sideways,” notes financial blogger New Deal Democrat in a post at XE.com.
“While the bottom isn’t necessarily in, barring new and worse developments out of Europe, I would expect the pound in the next few months to fluctuate about its value at the bottom Friday morning,” the blogger writes.
Any big Brexit-related damage to the U.K. currency has already happened, New Deal Democrat argues. It didn’t happen over three months to a year, but on that single Friday — “everybody” knew sterling was in trouble and decided to sell.
This call helps make the blogger upbeat on the U.S. economy, playing down fears about the almighty dollar hampering growth.
“While a strengthened US$ is a headwind, the lower interest rates that this year’s annual Europanic is bringing are a boon,” the XE.com post says. “I continue to see Brexit as ‘a fire across the river’ that should not have more than a minor effect on the U.S. economy.”
Go here to read the full post.