Brexit Biggestthreat to Sterling - Rabobank
Analysts at Rabobank explained that according to BoE Governor Carney Brexit is the biggest domestic risk to financial stability.
Key Quotes:
"That said, opinion polls suggest that the vote could still go either way."
"According to the PM’s Political Strategist Crosby, polls are indicated that one quarter of those favouring ‘remain’ were unlikely to vote."
"Given that uncertainty is compounded by the large quantity of ‘undecideds’, sterling is set for a rocky ride in the next few months."
"We see the potential for vote in favour of Brexit opening the prospect of a drop in GBP/USD to 1.20. Our forecast of a move to GBP/USD1.53 in 12 mth assumes a ‘Remain’ vote and the possibility of two Fed hikes this year."
(Market News Provided by FXstreet)
