British pound feeling the pressure
Published on 03.06.2016 00:30

The British pound is trading in a tight range today after more news from analysts suggest that the British currency will take a tumble should Britain decide to leave the EU.

At 8.37pm (GMT) the pound was trading at US1.4430 virtually unchanged from yesterday’s trade.

Analysts from UBS wealth noted the pound could fall another 15 percent should the UK become independent from the Eurozone and the stock market could tumble 10 percent.

UniCredit SpA, global head of currency strategy Vasileios Gkionakis also backed up this view by noting that the pound is headed for a major fall should the Brexit scenario unfold and traders are starting to feel the pinch by sitting on the sidelines,

 “Given all that is at stake, we are certainly concerned,” Mr Gkionakis noted

. “I think this is largely reflected in both the implied volatility in sterling, which has surged” and the fact that that the currency “seems to have lost its ability to rally” against the dollar and the euro as investors remain “largely cautious.” He added.

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Andrew Masters

Analyst

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