The political risks implied by the UK voting in favour of leaving the European Union (EU) in the 23 June referendum could end up undermining both the pound and the euro, according to analysis by WisdomTree Europe.
"Brexit creates uncertainty on all fronts," said Viktor Nossek, director of research at the exchange-traded fund provider, which is also participating in the current Professional Adviser Debate. "While the terms and conditions to be set on future trade agreements are unknown, it is likely that, being outside the block, the UK will have less leverage to negotiate favourable trade terms in the future. At a bilateral trade level, trade agreements both with and outside the EU may become more costly." Adding to the uncertainty is the length of time it could take the UK to extricate itself ful...
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