The looming threat of Brexit has weighed heavily on sterling and has begun to show up elsewhere in the currency universe — the euro.
The implications of a possible Brexit is are increasing pressure on the eurozone’s much maligned currency. Having been at the mercy of the dollar’s fluctuations for most of the year, it is now vulnerable to a market that, already sceptical about the durability of the euro, sees in Brexit a path that leads to the unwinding of the vaunted European project.
“That could be the real legacy of Brexit,” says Jane Foley, G10 FX strategist at Rabobank.
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