Currency News: Foreign Exchange Markets Don’t Believe in Brexit
Currency News
Foreign Exchange Markets Don’t Believe in Brexit
The British currency continued to rebound this week while the possibility of an exit of the United Kingdom from the European Union seems probable . In recent weeks, the opposition to “Brexit” increases its effort in view of the referendum on the subject on June 23rd.
The impact of a British exit from the European Union, known as Brexit, on a range of financial markets within the first six months after a theoretical Leave vote would be devastating, Morgan Stanley’s executives say. This is why the opponents are amplifying efforts to ensure that such event won’t happen. A Brexit could hammer investment in the U.K and Europe for years as it signaled warnings that the bank would need to move thousands of jobs to Europe if the U.K. left the European Union.
According to JP Morgan analysts, in a number of years, the decision of Brexit could create so much uncertainty that it will hurt real investment in the UK and Europe. Global markets are on edge in the build-up to the June 23 referendum which British citizens will vote on whether to remain within or leave the EU. Recent opinion polls have swung toward the Leave camp.
Even though voters lean towards Leave for now, it doesn’t mean they are fully agreeing with Brexit. Leavers ad Remainers will be spending the next few days trying to steel their resolve. We will only know the decision on June 24th.
