Convera's George Vessey said the 2016 Brexit referendum has had a lasting impact
on sterling. Since the vote, GBP/EUR has averaged 1.16 versus 1.27 in the prior
decade, and GBP/USD has averaged 1.30 versus 1.60 previously. Vessey says
sterling's market behavior has structurally changed: it is now more sensitive
to global risk appetite, protection against sterling moves has become more
expensive, and the currency exhibits a persistent downside tilt.