A Brexit would be a nightmare for the Old Lady

By FXStreet On 20th February 2016, David Cameron announced a referendum on whether Britain should remain in the EU – seen as the biggest political decision in decades. The referendum is to be held on Thursday 23 June.

“I do not love Brussels, I love Britain…the question is – will we be safer, stronger and better off working together in a reformed Europe or out on our own?” Cameron said in his original announcements outside of Number 10, Downing Street. “Leaving Europe would threaten our economic and national security.”

To the FX world, our ‘immediate’ questions are not of the economic and national security of Britain, but the ‘immediate’ implications to spot and what side of the spread to be while leading up to the referendum and how to play the outcome of the vote.

The very uncertainty of that has already seen big moves in GBP crosses and as a foretaste of what may come, the Great British Pound was dumped 2.4% just on the news that the London Mayor, Boris Johnson, was joining the Leave campaign.

There had already been a shift in demand for GBP that started to take shape last November. Since then, the pound has fallen over …read more

Source:: FX Street