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15 May 2015
GBP: timing of EU referendum remains uncertain - BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, comments on the expectations surrounding the EU referendum, and further notes that any potential negative impact on the pound on accord of this will likely build next year.
Key Quotes
“The easing of political uncertainty and policy continuity should further encourage a pick-up in activity in the near-term supporting the pound.”
“It is still too soon to expect a material negative impact on the pound from uncertainty relating to the upcoming referendum on the UK’s membership of the EU.”
“BoE Governor Carney stated yesterday that it is “in the interests of everybody” to resolve the question of Britain’s membership of the EU calling on Prime Minister Cameron to act with “appropriate speed”. He added that “we talk to a lot of bosses and there has been an awareness of some of this political uncertainty although statistics suggested that so far businesses had “not yet acted on that uncertainty”.”
“The FT has reported today that ministers are talking about holding the EU referendum in 2016 if they can, and that Prime Minister Cameron would prefer an early referendum to capitalise on his newfound political momentum.”
“The FT reports that ministers view the most likely date for the referendum as in the autumn of 2016 ahead of the Conservative election pledge to hold it before the end of 2017.”
“In that scenario any potential negative impact of rising uncertainty ahead of the referendum would likely build during next year.”
Key Quotes
“The easing of political uncertainty and policy continuity should further encourage a pick-up in activity in the near-term supporting the pound.”
“It is still too soon to expect a material negative impact on the pound from uncertainty relating to the upcoming referendum on the UK’s membership of the EU.”
“BoE Governor Carney stated yesterday that it is “in the interests of everybody” to resolve the question of Britain’s membership of the EU calling on Prime Minister Cameron to act with “appropriate speed”. He added that “we talk to a lot of bosses and there has been an awareness of some of this political uncertainty although statistics suggested that so far businesses had “not yet acted on that uncertainty”.”
“The FT has reported today that ministers are talking about holding the EU referendum in 2016 if they can, and that Prime Minister Cameron would prefer an early referendum to capitalise on his newfound political momentum.”
“The FT reports that ministers view the most likely date for the referendum as in the autumn of 2016 ahead of the Conservative election pledge to hold it before the end of 2017.”
“In that scenario any potential negative impact of rising uncertainty ahead of the referendum would likely build during next year.”