Wrong on the Pound Sterling, again.

‘Your currency is a disaster’ said Nigel Farage in his address to the European Parliament the day after Brexit vote. Well, maybe he should look again.

The Euro has outperformed the Pound Sterling against the US Dollar in every relevant period over the last four decades.

The Euro has been stronger against the US Dollar in the period from 1st January 1975 to 6th July 2016. The Euro outperformed from the day that the Euro became the accounting currency for the zone on 1st January 1999. The Euro has done better than the Pound from the date that Euro coins and notes were introduced into circulation on 1st January 2002. This is shown in the attached chart Comparison_2016_07_08

More recently, from their peak against the US Dollar in late 2007, early 2008, the Euro outperformed the pound.

Possibly, the currency markets were better at predicting a Brexit vote than the pollsters: from mid-December 2015 until 6th July, the Pound Sterling is down 14.4% against the US Dollar while the Euro is UP 1.4%

7th July 2016

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