GBP Gets Boost From Remain Camp Gains

The British pound got a boost as expectations that the U.K. would remain in the EU mounted after the remain camp made advances ahead of Thursday’s referendum.

By midday London time, the trade-weighted pound was up 1.9 percent to 86.9, and up 1.8 percent to 1.4630 against the dollar. It hit a three-week high during the session and was on track for its best one-day performance in seven years, according to Reuters.

Weekend polls showed the remain camp gained a narrow lead; a YouGov poll for The Sunday Times newspaper published at the weekend showed 44 percent supported remaining in the EU versus 43 percent who supported leaving, based on interviews conducted on Thursday and Friday. Two other polls also showed public opinion tilted towards the remain camp.

Given the fluid developments in the U.K., Vishnu Varathan, senior economist at Mizuho Bank wrote in a note Monday that there may be further volatility ahead in the forex market.

“If in-coming polls suggest ‘Leave’ resurgence, brace for another bout of ‘risk off’,” he added.

via CNBC

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