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Home / Analytics / Forex analysis & forecasts / Forex Fundamental analysis / Pound fell victim to politics. Overview for 22.02.2016
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Pound fell victim to politics. Overview for 22.02.2016

The GBP/USD pair fell sharply on Monday after the resumption of talks in the referendum in the UK.

The "number one" topic in the foreign exchange market on Monday - the British referendum on membership in the EU. Its date is still scheduled and it will be on June 23 of the current year. But the more the news are discussed, the more noticeable becomes the "split" in opinions in the English society. The GBP/USD pair is trading around 1.4162 during the day. The minimum of January 2016 is located at the level of 1.4080.

Thus, what is known at this point? The British Prime Minister David Cameron said that he had agreed with the European Union on exceptional conditions of membership of their country within the alliance. But, according to his campaign promises, he will still hold a referendum for the population on the location of the country within the EU. For the preservation of England as part of the EU and, respectively, Cameron - about half of the companies listed on the FTSE-100.

Looking from the other side - the Mayor of London Boris Johnson has outlined its position on this issue. He personally intends to vote for the exit of Great Britain from the EU. As a politician and as a man Johnson is very likable to the English, and his influence in this case can be very large.

At the moment these are "two main shores of a raging river." Even in theory, the UK going beyond the EU will set a precedent and will form the basis for the further dismantling of the alliance. It's no secret that what is happening in the European economy has a significant impact on the British economic system due to extremely "tight" integration. Maybe, if the relationship ceases to be so strong, for the UK it will become easier to recover and grow.
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