Brexit referendum looks likely to be a close run and uncertainty is likely to dominate in the near term.  British Prime Minister David Cameron said Saturday that the referendum will take place on 23 June.

The outcome of the referendum on 23 June is uncertain. The uncertainty could be unsettling to the UK and Europe, and could weigh on consumer and business confidence and leading to market volatility. Polls once showed a clear majority for "in." But they have tightened markedly in recent months, and most now show that the contest could go either way.

"We assign a probability of 40% to a Brexit. A Brexit would create a longer period of uncertainty and could deliver a severe shock to the British economy and the GBP." said Nordea Bank in a research note.