Polls see GBP surge again

25 May, 2016

Matthew Boyle

Yesterday was another strong day for the pound as a poll for the telegraph showed a 13 percent lead for the “in” campaign, and that critically the demographic the Brexit campaign had relied on (pensioners, men and Tories) had been returning to the “in” camp”. This positive momentum for GBP strength that we have seen since the middle of last week was also aided as Mark Carney Bank of England Governor spoke to the Treasury select committee, warning of potential recession should we Brexit. When cross examined by the committee he also provide a robust defence against claims from the “leave” camp that his stance was perhaps biased.

As a result the pound gained throughout the day across the board, but most noticeably stole 2 cents against the Euro and a cent and a half against the USD, taking it back up to a near 5 month high for both pairings. This means since last Tuesday we have seen a 4 cent increase against the single currency and 3 cents against the greenback. On a transfer of 100k this is a swing of around 3k for EUR and 2k for USD.

Today is a relatively quiet day in the way of data. Certainly at present the “in” campaign seems to be gaining traction by the day, and without doubt the media is supporting that. However don’t forget that when Boris Johnson publically supported the Brexit and before this recent traction we saw the rates almost 10 cents down from where we are currently, and to find ourselves at a 4 month high so close to the vote is perhaps unusual. As such it would not be unusual to see a correction in rates given the huge gains in the last week, and indeed if Brexit take hold we could see these gains for the Pound quickly eroded.

So should you have any upcoming requirements give Currency Index a call today for some friendly and professional guidance on how to get the most out of your transfer.