Brexit And What It Means For Markets
February 23, 2016
Dennis Gartman is editor and publisher of The Gartman Letter, and strategic advisor of the AdvisorShares Gartman Currency Hedged Gold ETFs (GEUR & GYEN). He regularly contributes to AlphaBaskets and lends his institutional insight to educate advisors and investors about commodities and the forex markets, including about trading gold in different currency terms.
Non-us “dollars” are strong; sterling is weak and the focus in the forex market has become the British Pound Sterling, the EUR and the very existence of the EUR and the monetary union in light of the impending referendum on the UK’s remaining in and joining the currency union, or leaving and holding to the British Pound Sterling. There are other concerns in the forex market of course, but now that the British Prime Minister, Mr. Cameron, has called for a referendum on this issue… finally; after years of promising that a referendum would indeed be called… the sides are lining up and the focus between now and June 23rd when the referendum shall be held shall be on this issue. It will tend to dominate the international news, “trumping” even the run to the Presidency here in the States, “trumping” Mr. Trump himself and trumping the news out of the Middle East.
The sides are being drawn and it is interesting that the entertaining… and often buffoonish Lord Mayor of London… Mr. Boris Johnson has come out openly opposed to the referendum, wishing the UK to remain wholly outside of the EU, as opposed to what Mr. Cameron has hoped to cobble together following his discussions with and agreement made between he and the leaders on the continent giving the UK some sort of esoteric, “special” relationship with the other EU countries.