EU referendum driving the markets

17 June, 2016

Ashley Finill

With the decision to stay in the EU or leave now only a few days away and continues to dominate the headlines with market remaining very much sentiment driven. Sterling’s volatile movements against its competitors, carries on being orchestrated by the EU referendum polls being released at random by various sources. With major uncertainty of which way the result will go, the Pound has reacted to this in a negative way loosing cent after cent against the Euro in the last few weeks. The outcome of vote has now seemingly swung the other way in favour of a Brexit, which at the start of the year was a very different story as when the referendum was first announced the stay campaign was way out in front for an expected victory and looked a safe bet for the UK to stay in the EU. However this all changed when former mayor of London Boris Johnson threw a spanner in the works when he publically announced that he was supporting a Brexit. Mass press coverage and uproar from many government officials for Boris’ stance started to create uncertainty amongst the public that an exit from the EU could well happen.

Forward to today and we can now see what detrimental effect it has had against the stay campaign with a wave of support for the Brexit gaining momentum and in turn throwing the result up in the air. The Pound has lost over 17 cents against the Euro since the EU referendum was announced so should the UK leave the EU it is not inconceivable to think that Sterling could lose further ground against its competitors and may take some time to make any sort of recovery.

So with the Referendum result next week [Thursday 23rd of June] and the result very much in the air, these last couple of days could be the last chance to secure your currency at these current rates. If the Brexit became a reality and the rate was to drop would your property purchase still be affordable if there was a 10% drop in the market? To avoid any losses to your budget there is a way to secure your currency requirement for up to 2 years in advance by our popular forward contract option, With only a 10% deposit required you can lock in these rates and eliminating the risk of the rate plummeting should the UK leave the EU. Please contact us today here at Currency Index to speak to your account manger to discuss your requirement and what your options are.