The Pound Sterling is currently rising against the US Dollar and is on track to post the largest single day’s gain in seven years. Later this week, voters in Britain will decide whether to remain within the European Union and the latest polls are showing momentum in favor of the “remain” campaign which has helped to boost Cable. Bookmakers are now showing that a vote to exit the EU is likely by only about 25%, well off last Thursday’s 40%. Currency strategists continue to stress to FX traders that the Pound is likely to be exceptionally volatile ahead of the voting which takes place on the 23rd.
As reported at 10:37 am (BST) in London, the GBP/USD was trading at $1.4613, up 1.03%; the pair ranged from a low of $1.4435 to a peak of $1.4674 in today’s trading. If momentum holds, the pair could hit a price not seen since March 2009. Meanwhile, the EUR/GBP was down 0.90% at 0.7756 Pence; today, the pair’s trading range began at a low of 0.7731 Pence to a high of 0.7828 Pence.
Draghi and Yellen in Focus
Beside Thursday’s referendum in Britain, both the US and the European Union are due to have some potential market moving events. Tomorrow, Mario Draghi, president of the European Central Bank, will be making a speech while later in the day, Janet Yellen, chairman of the US Federal Reserve Bank, will be testifying before the US Congress. Both Draghi and Yellen could offer clues as to the future direction and outlook of their respective economies and currencies. Currently, the EUR/USD pair is trading higher at $1.1334, up 0.13%.