I will say a few more things on the importance of the British referendum for the rest of the EU tomorrow morning in my lecture on Europe’s political economy at the event hosted by the Singaporean-German Chamber of Industry and Commerce. Today, I will limit myself to only one comment.
It seems that the weak pound is the only “certainty” across the spectrum of financial markets! Since the beginning of December, the British pound has lost over 7% and 5% of its value against the euro and the US dollar respectively (see Figure 8), with a portion of this decline in spot price being cited as a “Brexit” premium by market participants.