Hi everybody, please explain to me why the british pound decrease in value with

Question

Hi everybody, please explain to me why the british pound decrease in value with the perspective that Britain will go out of eurozone. And why this perspective makes the stock market so scary and begins to switch from equity to bond. Thank you. Hi everybody, please explain to me why the british pound decrease in value with the perspective that Britain will go out of eurozone. And why this perspective makes the stock market so scary and begins to switch from equity to bond. Thank you. And why this perspective makes the stock market so scary and begins to switch from equity to bond. Thank you.

Explanation / Answer

Ans:British pound is keep on faling because of this investors are worried about UK economic prospects if it leaves the EU and so they are more reluctant to hold sterling-denominated assets. Businesses do not like uncertainty and so exports, investment and overall growth could all be hampered.

Economists are not unanimous about a Brexit being negative for the economy, with some making the point that the UK could end up better off in the long term. But currency markets focus on near-term risks.

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