It is no secret that some the world's most powerful financial institutions warned against voting to leave the European Union. Almost as a single chorus, they said that a UK willing to pull out of the EU's regulatory environment is one that would not be stable enough to remain as Europe's financial powerhouse. Nine months after the rather contentious referendum, the picture looks a lot different.
Brexit came as a shock to markets all over the world. It has led to significant changes in the way businesses are acting. The UK high street is the focus of ordinary people in the UK. This guide is going to go into just how Brexit will impact the UK high street.
The Federal Reserve admitted this week that there was no rush to raise interest rates. On Wednesday, the Fed admitted that it although interest rates will remain unchanged, the door is still open to raising them by June or July. It has sparked significant activity from investors, many of whom expected an interest rate rise.
In the last week, foreign exchange markets saw a big hit as the Eurozone economy improved beyond expectations. It saw the pound’s value against the Euro stop its recovery, putting an end to a multi-week recovery that had raised confidence that the pound was going to recover in the long-term.
Buyers and sellers of gold received good news this past week as gold hit an all-time high for the last seven weeks. The spot price of gold hit $1280.60 per ounce. The gold price closed at $1277.61 at the end of the week, which was up by 9% on its last closing price.
The effect on the markets was apparently endorsed within the last week as the Organisation for Economic Cooperation and Development (OECD) issued a stark warning of the economic risks should Britain decide to leave the EU. A Brexit would apparently back up claims made by UK chancellor George Osborne that the economy would shrink, and it would cost every home in the country the equivalent of £2,200.