Post-Brexit: The difficulty of balancing long-term positions against tactical moves

Sterling at lowest since 1980s

The pound is, at the time of writing (11 July), considerably weaker against the US dollar having fallen some 15% in the first ten days since the referendum result to its lowest level since the 1980s, writes Invesco Perpetual's Stuart Edwards.

This reflects the markets surprise at the electorate's decision, but also the new economic reality. Already we are seeing the early signs of an economic slowdown, both anecdotally and in some early survey indicators. For example, an interim consumer confidence survey measuring consumers post Brexit views fell sharply. Sterling hit as UK PMI falls to lowest level since financial crisis The swift appointment of Theresa May as UK Prime Minister has resolved one source of uncertainty. However, there are many more yet to be resolved. Looking through Brexit for a moment, the global econo...