We monitor how the EU referendum and possible Brexit will influence exchange rates
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.
Several bank analysts are highlighting the referendum on E.U membership as probably the single most important event for sterling in 2016.
Analysts at Credit Suisse see multiple Brexit flash points as increasing the chances of volatile swings in the pound in 2016, as they down-grade their GBP forecasts.
We reported earlier this week that a leading Swedish bank had taken a negative stance on the pound / dollar exchange rate.
British Pound Forecast to be Weakest Performing Currency of 2016.
A vote on the UK's membership of the European Union and a new round of fiscal austerity could keep a lid on British pound strenght in 2016.
An exchange rate forecast note for 2016 from ING says strength will in the British pound will likely be capped in 2016 owing to political uncertainty surround the EU referendum.
Bank of America Merrill Lynch Global Research have let their position on a British exit from the European Union be known.
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