http://www.forexconspiracyreport.com/what-will-the-brexit-do-to-the-pound/
What Will the Brexit Do to the Pound?
In just three months citizens of the United Kingdom will vote in a referendum to determine if the nation remains part of the European Union or not. The possible British exit from the EU has been termed the Brexit. From the Forex point of view what will the Brexit do to the pound? Bloomberg Business sees the pound extending world’s worst losses through the June vote.
The pound is set to extend its decline, the biggest among rich-world currencies, beyond the day of the referendum that could lead to a “Brexit.”
Sterling has already dropped at least 2 percent versus all of its Group-of-10 counterparts this year, and options prices suggest it will fall further against every one over the next three months. That would see the U.K. currency’s losses extend beyond June 23, when the public will vote on the nation’s membership of the European Union.
While citizens of the UK may wish to leave the EU currency markets see it as a problem for Britain. The pound is down 4% this year and there is a premium for options protecting against GBP losses over contracts betting on a gain for the pound versus every G-10 currency. Why is this?
A Danger to the West
David Petraeus, retired American general and head of the CIA has stated that it is time for Western powers to come together and not split apart. The Guardian reports Petraeus saying that a Brexit would only make the world more dangerous.
4. http://www.forexconspiracyreport.com/what-will-the-brexit-do-to-the-pound/
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