Investing.com - In a session where cable hit a seven-year low after London mayor Boris Johnson declared that he would back the vote to leave the European Union (EU) in the referendum to be held on June 23, UK Prime Minister David Cameron presented his case to remain a member to the British Parliament.
Cameron insisted to the members of Parliament (MPs) that the agreement reached last Friday with the EU permanently protects the pound and ensured that the U.K. cannot be discriminated against.
The U.K. chief further affirmed that the deal would mean that British taxpayers would never have to bailout the euro zone, while at the same time, guaranteeing that banks would not have to be relocated the single-currency region.
Cameron also boasted that he achieved reforms that would make the EU more competitive.
He further warned that Britain’s exit would cause the need for new trade deals that would take “years and years”.
Additionally, he promised that the U.K. would have special status thanks to the recent renegotiation.
Cameron also reiterated that he has started the process to set up the referendum for June 23 and declared that the vote would be final.
Credit rating agency Moody’s Investors Service wrote in a report released on Monday that the outcome of the referendum was “too close to call”, but warned that Britain’s exit from the EU would be credit negative.
As uncertainty mounts, a Sky News poll found that Cameron’s EU deal actually made 36% of people less likely to vote to remain in the EU.
Concern over the possibility of a Brexit pummeled the pound on Monday.
GBP/USD hit a seven-year low at 1.4058 on Monday but has since recouped some territory and, at 16:03GMT or 11:03AM ET, traded down 1.94% to 1.4125.
GBP/JPY sank 1.68% to 159.55 as investors fled the pound to the safe-haven currency.
Finally, EUR/GBP rose 1.07% to trade at 0.7810.