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Pro Analysis

Here's why the British pound rout is not over

Londoners walk past the Houses of Parliament, reflected in a puddle of rain in Westminster, following the EU referendum on June 24, 2016, in London, England.
Mary Turner | Getty Images
Londoners walk past the Houses of Parliament, reflected in a puddle of rain in Westminster, following the EU referendum on June 24, 2016, in London, England.

Sterling's spectacular slide will give way to more measured misery. After voting to leave the European Union, Britain faces an economic slowdown that will warrant more monetary easing, a pickup in inflation, and huge political uncertainty. This is a toxic mix for any currency, even one that is already testing three-decade lows below $1.32.