This morning the Pound fell for the forth day in a row to a two month low. Over the weekend German Finance Minister Wolfgang Schaeuble said that “in is in and out is out” in regards to the UK remaining a part of the EU single market. The single market has been a huge selling point for the “Leave campaigners” as they believed that even if they opt out of the EU they could still have all the benefits of the single market like as some countries do, one of the main examples being Norway. Mr Schaeuble’s comments should of had damning affects on the polls but it seems the leave voters were not phased by this at all and weekend polls are still showing that the outcome is still neck and neck.
With the pound weakening and the polls giving no clear indication of the outcome of the vote, investors have been removing investments within the country with over £65bn in assets withdrawn from the country and placed into other currencies, amounts we have not seen since the economic bubble burst in 2008. It is clear that investors are worried that if England leave the EU the pound will be set for a sharp drop, more than we are seeing now.
Another question which lies on the tongue of politicians and the general public is “if England leave the UK, what will David Cameron do?” Cameron has already come out and said that he will stay as Prime Minister which has many Tory’s casting doubt over his stance. Whatever happens it would mean that the Brexiters would have immediate power within the cabinet.
It is all very much Chinese whispers at present but it looks likely that it will be busy few weeks for the pound. If you are looking to trade this volatile currency, make sure to have a healthy account balance and keep up to date with all relative news announcements.