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Pound stronger as Brexit kicks off.
Published on 16.04.2016 00:54

The British pound finished stronger on Friday as the campaign to stay in or out of the Eurozone began in what promises to be a volatile 2 months.

At close of trade on Friday the British currency ended the week at US$1.4195 up from US$1.4138 the previous day.

The pound has been the worst performing currency from the majors this year as the risk of leaving the Eurozone looms large, with more and more analysts as well as the IMF noting that a “Brexit” may be a disaster for the local economy.

Recent data out of Britain has in general been quite positive but the market is ignoring this and instead choosing to focus on the upcoming referendum

“The market will be looking less at data and more toward Brexit risks,” said Steven Barrow, London-based head of Group-of-10 research at Standard Bank Group Ltd.

 “Traders are watching for a direction one way or the other as far as the polls are concerned.” He added.

Strong employment data out of the UK expected next week may give some added support to the pound.

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Andrew Masters

Analyst

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