Abshire-Smith - Analytics


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    Brexit uncertainty weighs heavily on GBP

    And so it's begun......4 months of constant debate on whether or not the UK should stay or leave the EU.

    Even though the date has only been set now for less than a week, we have already seen a massive impact on the value of Sterling against all of it's major trading peers.

    There are very few opinions to suggest that this is not set to continue as the uncertainty builds towards the 23rd June 2016 day of destiny.

    This morning saw cable duck below the 1.39 handle, currently trading at 1.3893 for the first time since March 2009 in the midst of the Financial Crisis and is showing no sign of abating. EURGBP is steadily climbing towards parity again at 0.79 for the first time since December 2014, which has wiped out all of Mario Draghi's efforts to devalue the EUR.

    Boris Johnson throwing his hat in the ring for a Brexit has certainly shaken things up and even though the hasty announcement could well be only a political move on his behalf, being the current favourite to succeed David Cameron as UK Primie Minister come the Summer, it most definitely has created a feeling of fear in the markets despite fairly strong recent macro figures.

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