If Sterling Goes Down on `Brexit,' It's Taking the Euro With It
- Shared currency already weakening on ECB easing speculation
- U.K. exit would call European project into question: Pictet
‘Brexit’: What it Means For Currencies
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Britain’s referendum on its membership in the European Union isn’t just a threat to the pound. It’s raising currency-market risks across the continent.
While the pound led declines among major currencies on Monday with its biggest slide since 2010, the euro had the second-largest drop, weighed down by signs of slowing growth. The cost of options protecting against losses on Europe’s 19-nation currency also jumped. The U.K.’s potential exit may damage trade and encourage other members to renegotiate their relationship with the EU, signaling scope for further losses in the euro in the run-up to Britain’s June 23 referendum.