Universal agreement that Brexit would be negative – BBH

By FXStreet Research Team at BBH, suggests that in the foreign exchange market, sterling’s slide is the main feature.

Key Quotes

“It is off 1.6% or nearly 2.5 cents to approach the January 21 multi-year low a little below $1.4100. The driver is concerned that Prime Minister Cameron’s deal with the EU failed to change the debate in the UK. Despite Cameron’s personal appeal, London Mayor Johnson came out in favor of Brexit. This was seen as a major blow in some quarters, though we suspect narrow political considerations may have played a role. Johnson is seen as a likely rival of Osborne to succeed Cameron.

There seems to be nearly universal agreement that Brexit would be negative, at least initially, for sterling and the UK economy. Cameron’s negotiations with the EU in effect froze the supporters of continued membership, but in the coming days, they will be making a stand. Outside of sterling, the FTSE is higher, but lagging other major European bourses. The 10-year gilt yield is a couple basis points higher, more in line with US Treasuries than German or French bonds.”
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Source:: FX Street