Wednesday 22 June 2016

Withdrawal of the United Kingdom from the European Union (“Brexit”)

This week, on June 23rd, British voters will decide whether the country will withdraw from the European Union. Many experts believe that should Britain decide to leave the Pound will wind up under pressure, at least short term. In any case, high volatility is inevitable, particularly for currency pairs containing the British Pound.
According to the latest polls the amount of supporters of Britain leaving European Union has significantly increased. Some politicians who support this choice have already came up with a plan of what to do next. First of all, it will be the abolition of the rule of EU law over the national law. Secondly, migration policy will be changed and only qualified international specialists will have a chance to stay in UK. Finally, UK will save up to 100 million pounds as they will no longer have to pay their fees and contributions to the EU and they suggest to spend it on medicine and other problematic fields of economy.
Overall situation remains complicated and unclear. There will be no significant economic data published this week, all the attention will be concentrated on referendum. If UK citizens decide to leave the European Union it will have a massive impact on GBP as well as many other currencies, like EUR, JPY and gold.
EURGBP chart:

During the last four trading sessions the rate decreased on EURGBP D1 chart. But according to the indicator of technical analysis “CCI” this rate movement should not be considered as a new downward trend. Traders should be very accurate with technical analysis this week, as fundamental factors will significantly prevail.
More information available on http://www.darbasinternete.net/

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