The pound is expected to fall heavily, but not so much because the markets expect the economy to suddenly collapse into a recession, although many experts believe that leaving the EU will hurt the economy. The main reason is that many investors have been betting that we would vote to stay in and they have lost that bet. They will need to sell their holdings of sterling before it falls too far. Also if the economy is damaged by leaving the EU the pound will be less attractive to hold. The UK also needs to attract large amounts of foreign investment to pay for its imports and the country may now be a less attractive place to invest in, with its access to the rest of the EU in some doubt.
Brexit: Five key areas to watch on the economy
