Sunday February 21, 2016 - 12:04:36 GMT
Share This Story
Global-View.com - www.global-view.com
Brexit Referendum and its Impact on Sterling
In the US, there is a tradition on February 2 called Groundhog Day. On this day, if it is sunny when a groundhog comes out of its burrow and sees its shadow, it signals six more weeks of winter. If it is cloudy and the groundhog does not see its shadow, it signals an early spring.
Well, UK PM Cameron emerged from the EU summit on Friday with concessions in hand and called for a June 23 referendum on Brexit. This is a term being used for whether the UK should stay or exit the European Union. While Cameron saw his shadow and claimed this to be a sunny day, those favoring #Brexit saw it otherwise, suggesting four more months of uncertainty ahead of the referendum.
While the GBP reacted positively to end last week over relief that UK Cameron was able to come away from the EU summit with an agreement, this only sets up what will be a heated battle over Brexit during the next four months. What this means for the GBP and the forex market is more uncertainty and watching the latest survey polls. This suggests a market where you have to be aware of when the next poll is coming out as the forex market will react to the latest headline.
This also suggests a market of little conviction until one or the other side takes the upper hand in this historic event. Given how pollsters blew the last national election by calling the outcome wrong, caution is advised but the forex market, which is hooked on news headlines, will nonetheless be hyper sensitive to what Brexit polls show. So fasten your seat belts as this is going to be a bumpy ride,
Visit the Global-View Forex Forum for the latest Brexit news and its impact on sterling.
Jay Meisler, co-founder
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."