25 Apr 2016
Obama drama for Brexit campaign – Investec
Research Team at Investec, notes that the US President Barack Obama weighed in on the EU Referendum debate on Friday, sending the Pound higher as the leader of the world's largest economy recommended the UK remain in the EU.
Key Quotes
“President Obama even went as far as to say if the UK left the EU it would move to the back of the queue for negotiating a trade deal with the US, possibly taking 5-10 years to negotiate. Hillary Clinton, favourite to win the US Presidential race later this year, echoed Obama's stance on the weekend and the Pound again moved higher at Sunday's market open.
Supporters of the campaign to remain in the EU pointed to the US intervention to prove one of the leave campaign's core arguments of being able to quickly negotiate better trade deals is flawed. The leave campaign pointed out the hypocrisy of President Obama's stance, since the US would never give up sovereignty in the way they are recommending the UK do.
Either way with the Pound closing in on the mid 1.4s against the US Dollar, the top of recent ranges, it seems both last week's Treasury report and Obama's US intervention are seeing some risk premium of a Brexit unwound in currency markets.”
Key Quotes
“President Obama even went as far as to say if the UK left the EU it would move to the back of the queue for negotiating a trade deal with the US, possibly taking 5-10 years to negotiate. Hillary Clinton, favourite to win the US Presidential race later this year, echoed Obama's stance on the weekend and the Pound again moved higher at Sunday's market open.
Supporters of the campaign to remain in the EU pointed to the US intervention to prove one of the leave campaign's core arguments of being able to quickly negotiate better trade deals is flawed. The leave campaign pointed out the hypocrisy of President Obama's stance, since the US would never give up sovereignty in the way they are recommending the UK do.
Either way with the Pound closing in on the mid 1.4s against the US Dollar, the top of recent ranges, it seems both last week's Treasury report and Obama's US intervention are seeing some risk premium of a Brexit unwound in currency markets.”