The GBP/USD tumbled 92 points with little data as traders focus on Brexit and the budget proposed by George Osborne last week.
The GBP/USD tumbled 92 points with little data as traders focus on Brexit and the budget proposed by George Osborne last week.
The US dollar regained some of last week’s losses as the pound eased to 1.4392, FX Empire reports.
Analyst Barry Norman reminds that the director-general of the Confederation of British Industry (CBI) , Carolyn Fairbairn, said at the weekend that "leaving the EU would cause a serious shock to the UK economy, with a potential cost to UK GDP of £100 billion and 950,000 jobs by 2020 and negative echoes that could last many years after that." She made her comments in a lecture at the London Business School, citing a PwC analysis.
Britain will vote on June 23 this year on whether the UK should leave or stay in the European Union. Those in favor of the UK remaining in the EU have focused their arguments on the damage a Brexit — Britain leaving the EU — would have on the country's economy.
Norman says that the analysis indicates a cost to the British economy of leaving of as much as £100 billion – the equivalent of around 5% of GDP — by 2020. Even in a scenario where a Free Trade Agreement with the EU is secured rapidly, the analysis indicates GDP could be 3% lower by 2020.
GDP per household in 2020 could be between £2,100 and £3,700 lower, and the UK’s unemployment rate between two and three percentage points higher, than if the UK had remained in the EU.
