UFX Daily Forex Currency Trading News 23-June-2016. BREXIT Report
The Brexit Referendum
After months of prepping and planning, the UK Referendum has finally arrived. Today the people of the UK will cast their vote on whether the UK should remain in the European Union or not.
No matter the direction of the final figures, this is an historical event, politically and financially.
Traders, investors, and market professionals have been eagerly awaiting today’s vote for almost 4 years. After rejecting public and political calls for a referendum back in 2012, Prime Minister David Cameron positioned the vote as a high probability if re-elected in 2015.
The introduction of the European Union Referendum Act in 2015 made the referendum possible, with a vote date being set for today, June 23rd, 2016.
No matter the result of the referendum, nothing will happen immediately on the political front. However, financially the vote’s effect could very well cause high volatility and drastic market movements, especially on EUR and GBP based currency pairs, as well as UK based stocks and indices.
The final figures are intended to assist federal officials in garnering a decision about their current EU membership status. Also, in order to help in making a concrete decision, there is a high probability of a second referendum to follow in the near future. Final confirmation on whether the UK will remain a member of the EU or not, is projected for late 2017.
We asked our very own ,Managing Director, Dennis De Jong for his thoughts of a close or indecisive vote, and had he this to say:
“A close call could be interpreted by the British government as a mandate to initiate structural reforms at the EU level, from which we believe the EU, as well as Britain, could benefit. After all, Britain has been at the forefront of political, judicial, and institutional development and one of Europe’s leading nations for centuries.” UFX Managing Director, Dennis De Jong.