LUXEMBOURG CITY, LUXEMBOURG / ACCESSWIRE / October 17, 2017 / The 2016 Brexit vote created immediate shockwaves that extended far beyond political sentiments within Britain and the European Union. As expected, the global market reaction was swift, with the long-term fallout yet to be realized as the United Kingdom begins to move forward with its transition out of the EU. A panel of financial experts from Q Smart Limited, an internationally-recognized operator of electronic-trading platforms, recently examined the expected impact Brexit will have on the world's economic activity, particularly in regards to foreign exchange rates and the development of new trade deals.

Shortly following the revelation of a pending UK-EU partition, certain currency values in the area dipped to lows not seen for decades, including both the British pound and euro. While these numbers have since rebounded for the short term, future outlooks are not as positive within the region. Significant depreciation of the British pound and the euro will ensure changes to monetary policy on a global level, lowering market interest rates and raising relative currency values. According to a Forbes article from consulting firm Bain Insights, one expected result includes the appreciation of the U.S. dollar and Japanese yen, something that is sure to cause the United States Federal Reserve to enact an even more gradual pace of tightening, which in turn heightens the chances of aggressive responses from the Bank of Japan. ''A higher dollar and yen are negative to both economies' export sectors,'' the firm writes. ''In the case of Japan, this is particularly unhelpful to its efforts to re-inflate and reinvigorate the economy after decades of deflation.''

Q Smart Limited points to one likely positive from Brexit on the international financial markets; the eventual forming of new trade agreements between the European Union and key South American countries. Officials in Brussels have moved quickly since the referendum to realize the long-held goal of developing modernized deals with Mercosur, a sub-regional bloc that consists of Argentina, Brazil, Paraguay and Uruguay as its core members. While productive dialogue first began in 1999 among the two entities, Britain's consequential vote led to an immediate prioritizing of finally reaching an accord. The benefits are many for both sides. The South American bloc contains several fast emerging economies, and boasts a 500-million strong consumer market for European products. Figures show that in 2016, EU member countries exported £38.6bn of goods and imported £37.1bn from the region. These numbers are bound to increase after the new arrangement has been realized, with core principles set to be in place by December of 2017.