The UK economy and the pound is dominated by the in/out Brexit referendum on Europe. Today, Chancellor George Osbourne will be questioned in the House of Commons on the costs and benefits of EU membership ahead of the June vote.

In addition, Bank of England governor Mark Carney is speaking at parliament’s Economic Affairs Committee and his speech is likely to address the Brexit.

The pound for now is relatively calm but implied volatility for June is extremely high, showing the potential for big swings in the run up to, and post, June 23. We can expect political sabre rattling and pound volatility to increase as we get closer to the date.

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Article by Phil McHugh, Trading Floor Manager, Currencies Direct.
* Information courtesy of Currencies Direct
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