- I was trying to make was that although Brexit was the trigger for current Sterling volatility it was crystal clear that the currency wasn't set to go floating happily along at a rate of €1.30, even had the vote been to stay. Currencies move in response to all sorts of events and perceptions. To blame the current €/£ strength on Brexit is a failure to understand that. The Euro has gained against all major currencies. For example, at the beginning of this year it sat at $1.03, today it's $1.19. That's got nothing to do with Brexit.
It's a moot point now of course but Sterling was significantly overvalued prior to June 2015. It was almost certainly heading for a significant correction:
"In February, the International Monetary Fund said the sterling was overvalued by somewhere between 5% and 15% in 2015. Just before the referendum, the IMF put the over-valuation slightly higher, saying that sterling was overvalued by between 5% and 20% in 2015. Other experts, like the former governor of the Bank of England and the IMF, have agreed that sterling was overvalued."
https://fullfact.org/economy/exchange-rates-and-imf/
Indications are that the Euro is considered to be overvalued now and that the ECB will move in some way to weaken it.
Despite the "Told you so!" "Little Englander" temptation - the weeping 'n' wailing that's being posted regularly about Sterling across Forums isn't by any means wholly a result of Brexit.
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