Euro, Pound Gap Higher as Yen Drops Amid Ebbing Brexit Fears
- Euro, Pound and risk-on FX gap higher, Yen drops after latest UK “Brexit” polling
- Survation, YouGov and Opinium release polls showing growing “Remain” support
- UK EU membership referendum in 4 days, will see more polls released prior to vote
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Currency markets opened with noteworthy gaps for the major currencies. The Euro, Pound and risk-on currencies including the Australian, Canadian and New Zealand Dollars opened higher. The anti-risk Japanese Yen, Swiss Franc and US Dollar declined. These gaps are likely due to the most recent “Brexit” polling data released over the weekend. The polls released by Survation, YouGov and Opinium showed a sentiment shift back in favor of the “Remain” camp.
Polls from the weeks prior by the same agencies showed the “Leave” campaign leading by 2 to 3 percent. The shift in sentiment prior to the Brexit referendum vote on June 23rd is likely driving market optimism because a “Remain” vote would spare investors having to account for the inherent uncertainty in pricing in the unprecedented scenario of secession by an EU member state. Polling agencies will conduct some final surveys in the days leading up to the vote. A survey from ICM is due on Monday, ORB will publish a poll on Tuesday and Opinium is up on Wednesday.
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