Short GBP/USD, simplest way of trading the UK political uncertainty - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that the UK’s EU referendum campaign meanwhile is now in full flow.

Key Quotes

“Bloomberg’s latest poll tracker puts the ‘remain’ camp at 40%, with the ‘Leave’ camp at 39% and 21% undecided. So, still far too close to call. The Chancellor’s ‘long-term assessment of the economic costs of Brexit’ is said by the FT this morning to put the cost at GBP 4,300 per year for each household.

Warnings of a significant cost to leaving alongside uncertainty about the outcome of the vote, and you have a recipe for sterling to remain under pressure in the days and weeks ahead. Short GBP/USD may once again be the simplest way of trading the combination of post-Doha softer oil prices, and UK political uncertainty.”