IMF Has Its Say – Investec
Research Team at Investec, suggests that the IMF hit the headlines
yesterday as it cut its 2016 global growth forecasts to 3.2% from 3.4%.
“The IMF also said a UK exit from the EU could cause ‘severe regional and global damage’. The Pound had been enjoying a strong session in the morning following the release of the better-than-expected UK CPI Inflation figures, but Sterling slid in the afternoon, spurred on by the IMF comments and an ICM poll on the UK's upcoming June EU referendum vote.
The poll gave the ‘Brexit' side one of its best results so far, at 45%, compared to 42% for 'Bremain'. Despite polls continuing to show the result as too close to call, bookmakers' odds still point to the UK opting to stay in the EU. Worth noting the Euro also suffered on the poll alongside the Pound, whereas previously the Euro has been unaffected despite the obvious negative impacts of a Brexit on the Eurozone.
Oil prices rose and equities rallied yesterday, despite the downgrade in the IMF's global outlook.”