The Pound sterling opened this week by gapping lower 46 pips and posting a 14-day low at 1.4352 by yesterday's close. The strong declines came as nearly three separate opinion polls showed that the 'Leave' camp gained a significant lead against the ‘Stay’ camp. By early Tuesday morning, the sterling was seen trading stronger and ahead of the European session, GBPUSD posted strong gains, rising 113 pips.
With the EU referendum vote looming on June 23, the sterling has seen increased volatility. While many financial institutions have fallen in behind the 'Remain' camp, recent polls suggest that the outcome could be a cliffhanger. UK bookmakers have also noted an increase in the odds for a Brexit. Bookmaker Coral says that the odds of a Brexit are at a staggering 80%. Similar sentiment was echoed by other bookmakers including Ladbrokes and William Hill. The Bank of England is preparing a contingency liquidity plan to ensure that UK banks remain liquid in the periods leading to and after the referendum vote, while many institutional trading desks have announced that they will remain open through the night on June 23rd. Later today, British Prime Minister, David Cameron is expected to join a live telecast Brexit debate against Nigel Farage who is one of the main proponents of the ‘Leave’ camp.
Sterling Turns Volatile on Brexit Opinion Polls
Andamento del mercato - 07/06/2016