The British Pound Currency Exchange Forecast Today leaps in the Forex market as Britain’s will vote this week to the Brexit, The Eu Referendum of 23 June effects on all markets especially on the UK pound currency exchange forecast agaignt US dollar and other Forex currencies.
British Pound Currency Exchange Forecast Today
The pound jumped the most since 2008, spurring a global rally in higher-yielding currencies, as polls signaled the campaign for the U.K to stay in the European Union was gaining momentum.
The pound jumped the most since 2008, spurring a global rally in higher-yielding currencies, as polls signaled the campaign for the U.K to stay in the European Union was gaining momentum.
The currency’s climb started on Friday, and “polls over the weekend helped, but it still seems 50:50,” said Stuart Bennett, head of Group-of-10 currency strategy in London at Banco Santander SA. The pound “could drop strongly if next poll shows ‘Leave’ maintaining last week’s figures.”
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UK pound currency exchange forecast today
Sterling pound advanced 1.8 percent to $1.4612 as of 11:46 a.m. in London, and earlier had increased as much as 2.2 percent, the biggest gain since December 2008. That adds to its 1.1 percent increase on Friday, when it completed the first weekly advance this month.
A one-week gauge of implied volatility for the pound versus the dollar dropped to 38.5 percent from a record close of 47.87 percent in the previous session.
Hedge funds and other large speculators cut bets on a sterling decline versus the dollar, known as net shorts, in the week ended June 14 from a three-year high the previous week, according to data from the Commodity Futures Trading Commission in Washington.
“Weekend polls suggested the tragic death of Jo Cox may be shifting some support back to “Remain” — that has helped risk sentiment a bit,” said Robert Rennie, the global head of currency and commodity strategy at Westpac Banking Corp. in Sydney. “The polls are also driving the move away from safe-haven currencies.”
Among the other currencies active on Monday as the probability of Brexit was seen to decline:
The euro rose 0.5 percent against the dollar, the most in more than two weeks
Norway’s krone and Sweden’s krona jumped almost 1 percent against the dollar
The Aussie and kiwi strengthened at least 0.9 percent
The yen retreated 0.3 percent, set for its first decline in seven days
Eastern European currencies surged, with the Polish zloty rising 0.8 percent
A JPMorgan Chase & Co. index of Group-of-Seven currency volatility has declined to 11.6 percent, after closing at 12.8 percent on June 14, a level unseen since December 2011.
U.K. government bonds fell for a second day. The Bank of England and International Monetary Fund reiterated warnings last week about the economic risks of Britain quitting the world’s largest single market. The uncertainty of negotiating trade agreements after Brexit may delay investment and hiring, with some firms relocating if their business depends on access to the single market, the IMF said.
The probability of a vote to leave has declined to about 28 percent from almost 40 percent on June 15.
A survey showed “Remain” at 44 percent and “Leave” with 43 percent. The pollster said it doubted the rise in backing for the EU was tied to Cox’s killing and suggested it may relate more to concerns about what Brexit would mean for the economy.
“The markets have always been more comfortable with the U.K. remaining in the European Union, hence the boost to risk sentiment now that the ‘Remain’ camp’s campaign appears to be back on track,” Kathleen Brooks, London-based research director at Gain Capital Holdings Inc., wrote in a note to ForexSQ.
