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Sterling falls as Cameron announces EU referendum date

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The pound is on-track for its largest one-day fall following the backing by several large groups for a Brexit, as Prime Minister David Cameron unveiled the date of the vote.

At the weekend Cameron revealed the in-out referendum for the UK in the European Union will be held on June 23rd.

The price of sterling versus the dollar and euro dropped, while its value relative to the yen hit a two-year low. The pound dropped 1.6 per cent to $1.4 in early European trading, marking the lowest point this month. The early trading indicates it is likely to surpass its previous biggest one-day drop of a 1.66 per cent fall on 2 January last year.

The currency fluctuations came as prominent figures such as Boris Johnson and senior Cabinet ministers said they would back the campaign to leave the EU.

However, Cameron is expected to see a flood of support this week from senior business leaders backing his campaign to stay in the EU. Sky News reports that a letter from senior FTSE company executives will be released this week.

The letter is expected to say that leaving the EU would “would put the economy at risk” and would deter investment and put jobs at risk.

A poll from the Institute of Directors found that three in five business leaders plan to back a move to stay in the EU.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Is membership of the EU worth the £10 Bn a year that it costs the UK? Personally, I think the money could be put to better use at home and that it’s highly unlikely that UK plc would be £10 Bn a year worse off if we withdrew.

  2. Julian

    Not sure where you get your figures. According to the NAO & Treasury the net cost of our membership is 0.5% of GDP. Compare this to what we give in foreign aid – 0.7%. I think the EU is a bargain by comparison.

    As to falling Sterling – you ain’t seen nothing yet! Plenty of people are now going to make a killing shorting Sterling.(Remember George Soros?)

    So we now automatically have dearer imports and we haven’t even voted to leave yet!

    No sensible statistics have yet been produced showing the financial advantages of leaving. There are plenty to the contrary. Predictions (by either side) are valueless, it is the figures now that count. I have set these out before I don’t want to bore anyone again.

    If (when?) we exit I truly believe we will be sorely regretting it in years to come.

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