The fears of a possible Brexit are growing stronger which pushed the Pound Sterling lower versus the US Dollar and the common currency Euro. The latest polls indicate that the upcoming referendum could likely be in a dead heat, with as many in favor of Britain’s withdrawal from the E.U. as there are opposed. The latest read shows 46% in favor of withdrawal, 44% opposed and 11% undecided. In the five months span between mid-November 2015 and mid-April 2016, the Pound lost nearly 7% of its value, but was able to recover a large portion of it after the Barack Obama cautioned Britons on the ramifications of a withdrawal.
As reported at 10:39 am (BST) in London, the GBP/USD was trading at $1.4417, down 0.17%; the pair has ranged from a low of $1.4395 to a peak of $1.4468 in today’s trading. The EUR/GBP was up 0.38% to trade at 0.7904 Pence; the pair’s daily low was 0.7865 Pence and the peak was 0.7913 Pence.
Bank of England Decision Looms
The latest UK economic data is also weighing on the Pound with March’s Manufacturing Production (year-over-year) experiencing its largest annual decline (to -1.9%) in three years. Given the less than stellar economic data of late and the concerns over June’s Brexit referendum, money markets have already priced in an interest rate cut from the Bank of England by year’s end. The BoE will be announcing its monetary policy decision tomorrow and will be issuing its quarterly inflation report.