Sterling slumps as the countdown to June 23rd begins
The pound has suffered its biggest loss in 11 months this morning, following Friday’s announcement that Britain’s EU In/Out referendum will take place on June 23rd. As investors continue to lose their appetite for sterling, what should you be doing to protect your position?
The dust has begun to settle from last week’s discussions over in Brussels. After two days of intense debate we now know the precise timeline for a possible ‘Brexit’ from the EU.
Yesterday’s announcement from the mayor of London, Boris Johnson, that he will be backing the ‘Out’ campaign came as a major surprise to many and a severe blow to prime minister, David Cameron, who had of course previously announced the he will campaign for the UK to remain part of the EU.
Johnson’s announcement merely added to the weight of uncertainty surrounding the UK’s continued membership and the pound has responded by sliding. This morning it has a hit a three-week low against the US dollar. Indeed, as things stand, the pound is on track for its biggest fall since March 19th 2015, when it fell by 1.5% against the US dollar.
All indications are that investors are reacting to the mayor’s call for a “once-in-a-lifetime chance to vote for real change in Britain’s relations with Europe”. The market volatility surrounding the referendum isn’t going away and is very likely to continue to devalue Sterling.
Whether you plan to trade Sterling into a foreign currency before the referendum, are potentially buying a property abroad, or have ongoing overseas payments to manage, it’s vital to stay right up to date with this continuously moving situation.
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* Information courtesy of Currencies Direct
The contents of this report are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. Currencies Direct cannot be held responsible for any loss or damages arising from any action taken following consideration of this information. This article was written Currencies Direct.
