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Sterling soars amid easing of Brexit fears, yen turns lower

pound Sterling

The pound rallied against the other major currencies on Monday as worries that the U.K. could vote to exit the European Union eased after weekend polls showing the Remain campaign is regaining ground ahead of Thursday’s referendum.

GBP/USD rose 1.81% to a three-week high of 1.4681, extending its pullback from Thursday’s two-month trough of 1.4011.

EUR/GBP dropped 1.49% to 0.7736.

The pound also posted strong gains against the yen, with GBP/JPY jumping 2.23% to 152.84, rebounding from the three-year lows of 145.37 set on Thursday.

Two opinion polls published on Saturday showed that support for the ‘Remain’ campaign had regained its lead over a vote to leave, while a third showed momentum shifting in favour of a vote to remain in the 28-member bloc.

The shift in polls boosted the pound and revived risk sentiment, which had been hard hit by fears that a vote to leave the EU would cause turmoil in global financial markets.

Campaigning for the Brexit referendum resumed on Sunday after a three-day hiatus following the killing of Jo Cox, a Labour Party member and supporter of EU membership.

The dollar rose against the yen, with USD/JPY climbing 0.38% to 104.57, moving away from the almost two-year low of 103.53 hit on Thursday after the Bank of Japan left monetary policy on hold, disappointing some market expectations for more stimulus.

The dollar turned lower against the euro, with EUR/USD up 0.56% at 1.1340. EUR/JPY was up 0.9% at 118.51, recovering from Thursday’s three-year lows of 115.49.

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Paul

The author Paul