Fitch say that Brexit would increase downside risks to EU sovereigns

US ratings agency out with their latest thoughts on Brexit 16 May 2016

Lest we forget that the EU referendum is not just about the future of the UK.

• we would not expect to take any immediate negative rating actions on other EU sovereigns if UK left
• negative actions would become more likely in medium term if economic impact were severe or significant political risks materialised
• EU countries could gain from shift of some FDI from UK to EU
• Brexit could precipitate Scotland leaving the UK which might intensify secessionist pressures in other parts of EU such as Catalonia in Spain
• Brexit could boost ant-EU,other populist political parties, make EU leaders reluctant to implement unpopular policies with long-term economic benefits

Put that lot all into the giant Brexit mixing bowls marked " Confused" and/or " Conjecture"

Meanwhile GBP on the back foot again with GBPUSD down to 3-week lows of 1.4333