In a speech to the European Union parliament on Thursday, George Soros said Brexit not only created an opening to reinvent the EU but has also aggravated two looming dangers.
Soros said "it unleashed a crisis in the financial markets, comparable in severity only to 2007/8," adding Brexit could accelerate the crisis and reinforce deflationary trends that were already prevalent.
Brexit was a "great shock for him" and warned that the disintegration of the EU seemed practically inevitable last Friday morning, immediately after the vote.
The dollar index took a breather but remained near its three and a half month peak hit on the wake of Brexit results. The greenback edged up 0.1 percent to 95.836, just shy of Monday's high by 96.71. It benefitted largely from a flight to safety after Britain's EU referendum after its momentum was slow down largely by fading rate hike expectations in the weeks ahead.
Cable remains under pressure but bounced higher from Monday's 31-month trough. GBP/USD fetched 1.3466 on Thursday, well above Monday's 1.3122. Sterling also steadied against the yen and euro. EUR/GBP fell to 0.8250 by the time of writing after inching close to 0.8400 earlier this week. GBP/JPY trades above 138 after dropping to 133.06 last Friday.
