Foreign Exchange Daily Market Update 20/06/2016

Mon, June 20, 2016

Pound Strengthens As ‘Remain’ Campaign Takes Lead

The Pound rose the most since 2008, triggering a global rally in higher-yielding currencies, as polls signalled the campaign for the U.K to stay in the EU was gaining momentum. 

Sterling’s volatility shrunk as surveys taken after the murder of pro-EU lawmaker Jo Cox showed “Remain” gaining lost ground. A poll taken June 17-18 showed “Remain” backed by 45% and “Leave” by 42%, in comparison from the week before then the ‘leave’ campaign slightly edged the pole position. The Pound gained at the end of last week after campaigning for this Thursday’s referendum was suspended following Cox’s death. 

PM David Cameron entered the final week of campaigning ahead of the referendum with an accusation that his opponents are trying to deceive people into voting to leave. Campaigning had been suspended for two and a half days following Cox’s murder, Sunday saw both sides return to the fray.

Sterling climbed 2% to 1.4648 against the Dollar as of 9:23 a.m., the biggest gain since December 2008, after rising 1.1% on Friday to complete its first weekly advance this month. A one-week gauge of implied volatility for the Pound against the Dollar dropped to 37.2% from a record close of 47.9% in the previous session. The Pound rose to 1.2932 against the Euro.

Data to look out for today.

Not Much Data Out Today

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PRESS RELEASE

KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

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