British Pound Looks Cheap, but It Is No Bargain

The British pound may look cheap, but this does not mean investors should jump in. The U.K. currency has lost 15.4% of its value versus the euro since the Brexit vote of June 23, 2016, and there is no reason it cannot weaken further. Some say it could go as low as parity.

One euro bought 0.9156 sterling pounds on Monday, Aug. 21, on international markets. The pound has not seen such weakness since October 2009, according to FactSet data. At the time, the U.K. was reeling from the fallout of the collapse of Lehman Brothers, whereas it still looked like Europe would be spared the brunt of the global financial crisis....663 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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