Osborne Beats the Bremain Drum - Investec
Research Team at Investec, notes that the UK Chancellor George Osborne
continued yesterday to run his economic impact campaign, highlighting
his perceived risks in the event of a Brexit at next month's EU vote.
“The Chancellor has warned that a Brexit could lead to "tens of thousands" of potential job losses in the financial service industry. The Chancellor also estimated that 285,000 jobs in the financial sector are linked to business with the EU. Boris Johnson, the now-former London Mayor who has aligned with the leave campaign, highlighted there were similar warnings when the UK didn't join the Euro, pointing out that “Canary Wharf is now far bigger than the Frankfurt financial centre.”
The EU referendum continues to be a focus of currency markets, with polls remaining neck and neck once margins for error are accounted for, with the most recent poll yesterday afternoon showing the leave camp just ahead. The Pound is remaining surprisingly resilient with the vote only 44 days away. Sterling remains in a broad 1.4000 to 1.4600 range against the Dollar, with the pair quickly retracing back inside the range if extremities are breached. Only time will tell if another trigger awaits to send the Pound sharply higher or lower before the British public votes.”