Brexit is looking stupider every day.
Lost among the kerfuffle raised by the USD's continued slide and big picture consequences of recent political events on both side of the Atlantic is just how bad the Brexit decision is beginning to look for the UK.
Currently EUR/USD is at its highest level in more than a year, north of 1.14 and indicating increasing confidence in the European economy. Years of austerity measures and a brush with populism appear to be in the rear view window and a new European economy led by France and Germany and fueled by an influx of young and/or immigrant workers is poised to experience significant growth in the next few years.
Meanwhile, Britain continues to stumble, lacking anything approaching a political consensus and still dealing with the fallout of a significantly weakened pound sterling.
Normally Britain could lean on the growth of the EU in order to stimulate their economy.
Normally the EU would love to take advantage of the British financial system and cultural ties to the former colonies to boost their own exports.
Unfortunately with weakened cultural and economic ties to Europe the UK is on its own. Many of the challenges the nation is dealing with could be solved by rejoining the EU or rescinding their exit, however this is unlikely to happen due to political reasons. Moreover the EU, in order to prevent future exits, is unlikely to be particularly forgiving when negotiating new terms with the Brits.
So what was gained by last summer's vote to stop taking orders from Brussels?
What was once the financial capital of the world is now facing middling growth at best, a recession at worst, and can no longer count on a constant stream of foreign capital flowing in.
Currently EUR/USD is at its highest level in more than a year, north of 1.14 and indicating increasing confidence in the European economy. Years of austerity measures and a brush with populism appear to be in the rear view window and a new European economy led by France and Germany and fueled by an influx of young and/or immigrant workers is poised to experience significant growth in the next few years.
Meanwhile, Britain continues to stumble, lacking anything approaching a political consensus and still dealing with the fallout of a significantly weakened pound sterling.
Normally Britain could lean on the growth of the EU in order to stimulate their economy.
Normally the EU would love to take advantage of the British financial system and cultural ties to the former colonies to boost their own exports.
Unfortunately with weakened cultural and economic ties to Europe the UK is on its own. Many of the challenges the nation is dealing with could be solved by rejoining the EU or rescinding their exit, however this is unlikely to happen due to political reasons. Moreover the EU, in order to prevent future exits, is unlikely to be particularly forgiving when negotiating new terms with the Brits.
So what was gained by last summer's vote to stop taking orders from Brussels?
What was once the financial capital of the world is now facing middling growth at best, a recession at worst, and can no longer count on a constant stream of foreign capital flowing in.
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