FXStreet (Edinburgh) – Lee Hardman, Currency Analyst at BTMU assessed the scenario for the UK’s referendum on whether to remain or not part of the EU.
Key Quotes
“It has been reported over the weekend the UK government is considering holding the EU referendum earlier than initially expected”.
“Chancellor Osborne has begun a two-day effort to persuade French ministers to back Britain’s EU reform drive”.
“The FT has reported today that Chancellor Osborne has told friends that it may be possible to complete the EU renegotiation by December clearing the way for an in-out referendum in the first half of 2016”.
“It has also been reported more specifically that Prime Minister Cameron plans to hold the referendum in June of next year”.
“An official confirmation of the timing of the referendum is expected to be announced at the Conservative party’s annual conference in October”.
“Holding the referendum earlier than planned will increase downside risks to our outlook for the pound in the year ahead especially from early next year as economic uncertainty will heighten and capital inflows into UK could be dampened at least temporarily”.
“The latest opinion polls have revealed that public support to remain in the EU has strengthened this year alongside improving consumer confidence”.
(Market News Provided by FXstreet)