Pound Sterling Outlook Suffers as Referendum Voting sees 'Out' Win

June 23, 2016 - Written by Minesh Chaudhari

STORY LINK Pound Sterling Outlook Suffers as Referendum Voting sees 'Out' Win

The votes have now been counted, and the UK is set to exit from the EU. This has sent the appeal of the Pound through the floor, due to the worrying implications for the UK's economy.

With the EU Referendum voting period now half over, it seems likely that the Pound will start to fluctuate wildly once the night's results begin to be announced.

EU Referendum Day: How Will the UK Vote?

As Britain woke up to voting day in the European Union Membership Referendum, a key battleground was swathed in torrential thunder storms, leading political analysts to forecast a reduced vote for the ‘Remain’ campaign.

Official weather advice, issued by the UK Met Office on the evening of Wednesday 22nd June, included one Amber Weather Warning specifically covering the whole of Kent and East Sussex predicting, ‘intense thundery downpours… affecting parts of southeast England.’ The Met went on to instruct residents to, ‘be prepared for possible disruption to travel and localised flooding as well as frequent lightning.’

The Met Office issued another separate Yellow Warning, valid from 1800hrs on Wednesday 22nd June to 0600 on Friday 24th June - the entire period of voting in the Referendum. The Met’s advice stated that,

‘Although some areas will miss them, thundery downpours will continue to affect parts of the warning area,’ and also went on to advise residents to, ‘be aware of possible disruption to travel and localised flooding as well as frequent lightning.’

GBP EUR Exchange Rate Predicted to Reach 1.40 if the UK Votes to Remain

Interpreting recent opinion polls, political analysts have pointed out that those who have stated an intention to vote ‘Leave’ generally state a considerably higher likelihood that they will actually cast a ballot than those suggesting that they will vote ‘Remain’. This fact has led insiders to suggest that inclement weather across the South East during the period when polls are open could serve to supress the ‘Remain’ vote in the UK’s most populous area.

Meanwhile, as the polls opened across the UK at 0700hrs this morning, leading betting exchange Betfair (PPB.L) suggested that the implied percentage chance of a Brexit vote today had slumped to only just above the 20% level; this figure stood at 45% as recently as two weeks ago. The short to medium term Pound Sterling forecast hinges on today’s vote, with a move to 1.4000 GBP EUR considered possible if it goes the way of the ‘Remain’ campaign.

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TAGS: Pound Euro Forecasts Pound Sterling Forecasts