Pound expected to rise as BOE Governor Carney to give statement on Brexit

Pound expected to rise as BOE Governor Carney to give statement on Brexit

The Bank of England will be engaged in a debate in connection with UK membership in the European Union with Governor Mark Carney set to testify on the matter before the Treasury select committee of Parliament.

This so called “Brexit” is set to go to a referendum on June 23 according to a government announcement.Carney will be challenged on his views of the implications such a move would have as well as the negative effects to the financial and trade sectors.

The BOE appear to avoid the politics to exit or staying put decision .Non-committal rhetoric this time may be good and taken to mean support of the anti-Brexit debate.A country like Britain’s exit would cause ripples. That means the actual short term consequences would obviously be unpredictable.Moreover, if decision to leave the regional bloc is made by UK,what is bound to follow in the next two years is a renegotiation of relationship between the two establishments.

This would possibly cause uncertainty, which could potentially destabilize the economy as activity falls until greater confidence arises.

Carney’s discourse of this simple assertion may receive opposition of Mr. Cameron, who Is in favor of the status quo.The uncertainty in the Brexit matter could suck in the undecided to the government’s position.A recent poll by YouGov a preference f 40-37 percent for remaining with the EU, and 18 percent undecided.If the central bank head gives a non committal tone, the third group may be swayed to the “stay” camp.A scenario where it turns out like that following Carney’s statement may push up the British pound.

Looking at the data, the Eurozone GDP figures of fourth quarter take top billing.Its unlikely that the release wil cause traders too commit to a strong directional bias, however considering they are waiting for the ECB rate decision later this later.

Categories: News
Tags: brexit

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