Tuesday, May 24, 2016
The pound is charging after the latest Brexit poll showed remain building a huge lead
The British pound is on a charge on Tuesday after a new Brexit poll showed that the Remain campaign is moving further into the lead ahead of the UK's EU referendum, which is now less than a month away.
On Tuesday morning, a poll conducted by the ORB for the Daily Telegraph showed that 55% of people now back staying in the EU, compared to just 42% wanting to leave.
The poll calmed nervy currency traders, and caused the pound to rocket higher, gaining nearly 0.5% against the dollar at around 9:00 a.m. BST (4:00 a.m. ET).
Since then, it has continued to soar, and as of around 12:40 p.m. BST (7:40 a.m. ET) is up just shy of 0.9%. Here's how it looks:
ORB's poll was good news for currency traders, who are generally worried about the potential impacts of Brexit on Britain's currency. Various warnings, from everyone from currency traders all the way to the IMF, have suggested that Sterling could crash as much as 15%-20% after a Brexit vote.
One of the key findings of the poll was not just that remain has a big lead, but also that many of the key demographics expected to back Brexit — like men, pensioners, and Conservative voters— are now increasingly likely to vote to remain in the EU.
The pound slumped early in 2016, hitting a near ten-year low in February after former Mayor of London Boris Johnson made his much-anticipated decision to back Brexit. Since then however, it has climbed by more than 5%, as worries about Brexit have waned somewhat. Earlier in May for example, it was reported that traders no longer fear that Britain will leave the EU.