With only about a week to go for Britons to vote for or against the referendum which would decide their fate as regards staying within the E.U., the Pound Sterling is being pressured by uncertainty. The Pound Sterling index which is trade-weighted against major rivals earlier fell to a 3-week trough when it lost 1%. The latest polls show that voters seem to be “inclined” to vote for leaving, with one poll putting the “go” campaign at 2-point lead and another giving it a 4-point lead. UK bookmakers give the odds at 30%. Just a short while ago, the UK Prime Minister spoke out in an effort to give the “stay” contingent some support.
As reported at 10:54 am (BST) in London, the GBP/USD was trading at $1.4417, down 0.40%; the pair has ranged from $1.4354 to $1.4478 in today’s trading. Meanwhile the EUR/GBP was trading at 0.7879 Pence, a gain of 0.36% for the Euro; the pair’s daily trading band ranged from 0.7845 Pence to 0.7905 Pence.
Dollar Regaining Footing after NFP Shocker
On the other side of the Atlantic, the US Dollar is finally seeing some recovery after getting slammed in the wake of last Friday’s shocking NFP labor report which added only 38,000 new jobs in May, far fewer than the 161,000 expected. The EUR/USD was down 1.1343, a loss of 0.19% while the USD/JPY was trading at 107.1570 Yen, up 0.67%. The NFP figures will just add to investors’ uncertainty as regards a rate hike by the Fed, though some analysts believe that Janet Yellen could still suggest a rate increase as soon as next month.