After the news of the resignation of May .. Expectations of the fall of sterling and markets are waiting

Osman Boucheikhi - London

The announcement by British Prime Minister Theresa May of her resignation was no surprise to global policymakers, analysts, newsrooms or global markets.

Despite the lack of surprise in the event, the value of the pound sterling - immediately after the announcement - slightly increased against both the euro and the dollar, but quickly returned to a decline similar to the past few days.

The FTSE 100's response was small, although it is one of Britain's biggest stock indexes with the largest 100 shares on the London Stock Exchange.

In this indicator, sectors are more vulnerable to domestic political and fiscal changes, such as airlines, home building and local banks.

Dedicated to the fog
"It is in a healthy state despite developments in the British government, but in general it is like a confused rabbit unable to jump up or down," said Chris Tonor, a UK economist.

Apart from the reaction of the markets to the May move, investors still see these events as a reminder of a bigger blur on the horizon, especially as they look for the long term.

Others believe that with May's departure, a smooth European compromise and divorce seems to be dispelling now, as the only thing the parliament seems to agree on is not going out without an agreement.

Therefore, the markets are waiting carefully for what will happen to the pound and the British financial assets, because the fate of this depends on who will take over the premiership.

Business and money experts divide into two parts: the first is short and covers the coming days, and the second is long and includes the summer period.

The markets were given some certainty with the May move that the government would leave, as the pound could see a temporary recovery provided that Teresa May hurried to leave.

If its successor - as it seems likely - is enthusiastic about the bricast process and pushing for an exit without a deal, the pound is likely to face further declines with British equities, at a time when some institutions are expected to hold the pound for the moment.

But the pound could see a real drop if the foreign minister and former mayor of London, Boris Johnson, win the Conservatives' lead. Some analysts expect the pound to hit its lowest level since 2016 at $ 1.20.

As the faces change in the British government, the problems of the bricast remain unchanged, so experts recommend British investors to diversify their investments geographically to ensure safety as uncertainty grows.

An economy ruled by waiting
"He is not absolutely sure about the ability of the British MPs to move forward to resolve the brixes' problems," said John Tullivan, head of Tesco's UK chain of stores. "The deadline for October 31 is likely to be overtaken by Britain and delayed by the EU."

There are other risks for investors, mainly in the scenario of early general elections later this year. Markets will then have to think about how to adapt to the possibility of the opposition Labor Party reaching Ten Downing Street led by Jeremy Corbin.

Overall, senior economists believe that the current situation is very likely to continue throughout this year, and investors only have to wait.