After an all-time low of 1 GBP being worth just 1,06 EUR
The pound has been slowly rising in the last month with the currency pair around 1 GBP to 1,12 EUR in the last few days.
This means that the pound has recovered to the values held before the sharp drop at the beginning of August.
In a medium-term retrospective, pound has been in a decline since the Brexit referendum in 2016. With periods of relative stability, even growth being punctuated with sharp drops, which are usually based on a political event that unnerves the markets.
Should Brexit happen, it will bring certain political closure, but the same cannot be expected of currency. While Brexit itself will almost certainly precipitate another sharp drop of GBP, what happens afterwards is much less certain. Much will depend on how hard the UK economy is hit by Brexit. If it does better than expected GBP will rise, if not then it will fall further. On the other hand, EU will be hit by Brexit as well and it may be that this will mitigate pound’s fall somewhat.