The Pound Sterling continues to be hammered as the “horse race” that is the Brexit decision nears the wire. Voters will decide on June 23rd whether Britain remains within the European Union, and the latest polls now show a growing gap between those in favor of leaving and those in favor of staying. That has pushed the Pound close to an 8-week trough, and pushed volatility significantly higher, as well. Some FX traders have, in fact, said that given that they are more than likely to sit on the sidelines come referendum day, at least as regards the Pound and its crosses.
As reported at 11:00 am (BST) in London, the GBP/USD was trading at $1.4140, down 0.51%; the pair has traded at a low of $1.4113 and a peak of $1.4220 in today’s trading session. On Monday, the pair had struck an 8-week trough at $1.4117 which, of course, fell lower still in today’s trade. The EUR/GBP was down 0.24% at 0.7924 Pence, very close to the session trough of 0.7921 Pence. The GBP/JPY was down 0.65% to trade at 149.91 Yen; safe haven drives have steadily pushed the Yen to a 3-year peak versus the Pound.
Rupert Murdoch Editorial Calls for Brexit
On Sunday, media-giant Rupert Murdoch called on Briton’s to vote to leave the EU; Murdoch publishes the UK’s very popular Sun newspaper. Nonetheless, government officials continue to appeal to voters to cast a ballot in favor of remaining in the EU bloc. Analysts remain concerned of the impact that a Brexit could have on the economy there, as well as the subsequent hit to the Pound Sterling. Also weighing on the Pound, to a lesser degree than normal, however, is the upcoming policy meeting by the Bank of England.