Citigroup advises not only their clients, but they also turn to investors and traders at least today to avoid trading in pounds. The reason: The upcoming Brexit vote, which will most likely generate a huge volatility in the pounds, and will decide the fate of Prime Minister Theresa May will remain in politics.
"Over the next few hours, we will find out what is the extent to which May will lose and how much it will lose." - says David Bailin, Head of Global Investment at Citi Private Bank.
Investors are preparing for serious shocks and extreme levels of volatility in the British pound. According to Citi, the currency may fall by 10% at a loss or rise by a similar percentage if we have a surprising success in the vote.
"Regardless of the outcome of voting today, it is difficult to predict the direction of the pound in the short term." - says Steven Wieting, chief investment strategist at Citi.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
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