The UK is finally triggering the process of leaving the European Union by invoking Article 50. Saxo Bank’s head of macro analysis Christopher Dembik explains why Brexit will have a huge effect on investors.

Little will occur in the negotiation process between the EU and the UK until after the German elections have taken place in September, says Dembik.

He says that the UK pound is currently undervalued by 15% versus the US dollar, but GBP could go lower in the coming months due to uncertainty linked to Article 50.

Dembik also explains why he thinks British prime minister Theresa May could call a snap election in order to gain more popular support within the UK.