Over the coming days, we see 1.30 and 0.85 as a realistic level for GBP/USD and EUR/GBP to clear respectively, with risks skewed to the downside. While the initial gap lower has been largely driven by market positioning and liquidity, however, the medium term implications of Brexit on sterling have yet to be felt. The UK’s record current account deficit means the currency is the in the worst possible position for the severe slowdown in capital inflows that will result from uncertainty generated by the result today. This will be exacerbated by further Bank of England easing, as forecast by our UK chief economist, and ... (full story)