Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
Even though the UK is across the Atlantic, the Brexit will doubtlessly have an impact in the US, even to citizens! So let’s outline the top 5 reasons:
1. Instability in Europe
The European Union is losing its attractiveness; specifically, after the UK wanting to get out of the Eurozone. The potential EU referendums in other countries such as Italy, Spain, Portugal and Netherlands can create a domino effect and lead to the collapse of the Eurozone. The first one in the line is the Italian Referendum. Although it is uncertain and hard to identify which country might want to exit the Eurozone after Great Britain, it is highly possible. If so; the process of the EU referendums taking place and the exit would surely precipitate instability in Europe. In fact, it can turn into a domino effect.
In return, the US will face volatility and uncertainty in EUR, triggering economic anxiety.
2. Potential damage to the Economy
UK is one of the largest trading partners of the United States and any change in GBP will have an impact on the US dollar. Essentially; when GBP dropped to 30-year lows, British stocks got crushed; it wasn’t a surprise when Wall Street dipped more than 500 points right after the markets opened.
3. Put pressure on the ‘’Special Relationships’’
The US and the UK has a relationship status called ‘’Special Relationships’’ since 1946. This close relationship which includes the level of collaboration in many ways such as economic activity, trade, commerce, military planning, execution of military operations and nuclear weapons will most likely change. In fact, back in April, Obama stated that a successful Brexit would move the Great Britain to the ‘’back of the queue’’ when it came to trade deals with the US.
4. Trump’s extreme actions on illegal immigration can hike
One of UK’s Brexit reasons being illegal immigration has created an impact on Trump’s ‘’Muslim Ban’’ and the ‘’Mexican Wall’’ decisions. Further decisions taken by the UK can trigger Donald Trump’s policies on the immigration topic.
5. Travel to the UK will be cheaper
This one is something flashy for the US citizens. As GBP gets weaker against the US dollar, the cost of travelling, accommodation and expenses will become cheaper. It is also expected for the Americans; who were the second biggest group of tourists to move on up to the top spot, replacing France.
