We monitor how the EU referendum and possible Brexit will influence exchange rates
Assuming Brexit risks to the British pound have now passed would be misguided argue analysts at Capital Economics.
The 23rd of March marked a milestone in that we are now three months away from the EU referendum. The countdown has begun.
Could a 'Scotxit' follow a Brexit?
The pound sterling has lost ground against the dollar thanks to Brexit fears and a heavy sell-off in the GBP-JPY cross.
Brexit will see the GBP fall, but worryingly for sterling bulls, even an In vote won’t save pound to dollar exchange rate from the 1.20s.
Sterling has had a very difficult time so far in 2016, with the EU referendum dominating national and international newswires.
The Bank of England has today announced that it will offer extra cash facilities to the UK’s banks around the time of the EU referendum.
A leading investment management company still see outstanding risk premia stemming from the uncertainty of the closely fought referendum campaign.
A higher risk premium across UK financial markets is likely to persist in the interim to June 23rd, with sterling most likely to be the lightning rod.
The pound could fall by as much as 15.0% in the event of a Brexit, but such a devaluation could help rather than hinder the recovery, according to economists Roger Bootle and Jonathon Loynes.
There is more Brexit uncertainty for sterling to absorb but it will eventually catapult higher once the referendum results in a win for ‘in’.
If the UK votes to leave the EU than the EUR to GBP conversion will hit equality suggest two forecast notes.
RBC Capital Markets have put out some useful pointers to help form the debate over the UK’s in/out referendum on future European Union membership.
Here are the views of a number of currency analysts in the wake of Monday’s deep slide in the pound.
Foreign investment demand for UK assets will remain as robust as ever in the event of the UK leaving the European Union it is argued.
A relatively quiet day for economic data leaves markets to focus on the EU leaders’ summit in Brussels.
What drives the pound? The answer is Foreign Direct Investment.
“The UK will need to get beyond “Brexit” fears before GBP can strengthen, but once it does, the rally is set to be sizeable.” - HSBC.
Markets are misplaced in thinking EU referendum risks will result in the pound sterling falling against the euro it is argued.
A new poll shows the majority of UK citizens desire to leave the European Union.
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