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Brexit fears pressure pound
Published on 15.03.2016 23:58

The British pound has fallen sharply against the US dollar in today’s trading as Brexit fears flood through the market again.

At 8.44pm (GMT) the British Pound was trading at US$141.57 down around 1 percent from Yesterday’s trade against its US counterpart.

Although most were in favor of remaining in the European Union at the beginning of the year, the Euro sceptics are now gaining ground with the latest ORB poll showing them with a slight lead as the referendum date in June gets closer.

Many analysts are predicting that an exit from the Eurozone would spell disaster for the British economy and could cause a financial collapse with many international banks and businesses leaving to set up headquarters in different countries as noted by Bank of England governor Mark Carney,

"There are views that have been expressed publicly and privately by a number of institutions that they would look at it. I would say a number of institutions are contingency planning for that possibility - major institutions, foreign headquartered, which have their European headquarters here” he said.

The pound may come under further pressure tomorrow with the release of the latest interest rate decision from the US Federal Reserve with some predicting an outside chance that the US Fed may raise rates again.

Even if they keep rates on hold, a bullish statement after the announcement is likely to put further pressure on the pound. 

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Andrew Masters

Analyst

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