Pound Would Sink 9 Percent If Country Voted to Leave EU

The British pound would sink 9 percent against the dollar in the immediate aftermath of Britons voting to leave the European Union on June 23, a Reuters poll of foreign exchange strategists showed on Thursday.

Conversely, if they decide to remain in the 28-member union then the pound would gain 4 percent on the greenback, the survey of more than 30 currency forecasters taken in the past week found.

When asked in April how sterling would fare, median forecasts suggested it would gain the same 4 percent soon after an ‘In’ vote but would fall 7 percent if Britain voted to leave. Since then the ‘Remain’ camp appears to have gained some traction, which has supported sterling.

Reuters

Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.