GBP/USD: 'Swexit' next? what would it mean for GBP? - BTMU
BTMU on Switzerland's referendum
BTMU Research discusses GBP outlook in light of the contentious issue of immigration in the EU which came to fore again yesterday with the ultra-conservative Swiss People's Party (SVP) receiving official approval to collect the required 100,000 signatures required in order to hold a referendum on changing the constitution that would effectively give Swiss politicians full control of immigration policy and open up the way for Switzerland to break the bilateral agreements.
"This issue is now set to rumble forward in the background to the Brexit negotiations on a full free trade agreement and will be another example of why this single issue is driving a wedge across Europe. It is of course part of the problem in Germany also and why we still do not have a government in place.
This could mean that the EU slowly becomes more accommodating or flexible in its dealing with the UK on reaching a positive trade deal while allowing the UK much greater control of its borders.
We continue to see ample upside scope for the pound this year on favourable Brexit developments unfolding," BTMU argues.For bank trade ideas, check out eFX Plus.