Latest view from Currencies Direct on exchange rates

As we edge ever closer to the EU referendum on 23 June, all eyes turn to ITV at 10pm Spanish time tonight (June 7), where David Cameron and Nigel Farage will face questions from a live studio audience.

Recent polls suggest that the Leave campaign has witnessed a sharp rise in support, with the latest Observer/Opinium poll suggesting a 3 percentage point lead for Vote Leave, whilst the latest from YouGov puts them even further ahead at 4 percentage points.

With this apparent swing in sentiment comes more volatility for the pound. Yesterday, sterling hit a three-week low against the euro, failing to build on its rally in previous weeks. However, this morning has seen a slight improvement, suggesting a minor recovery today.

The weakening of the pound appears to resonate with recent positive polls for the Leave campaign, as the Remain camp’s lead – as well as confidence – starts to waiver. With just 16 days to go, expect market volatility leading up to, and after, the EU referendum vote to continue.

Cameron and Farage Live: The EU Referendum, ITV – Tonight, 10pm.

This opinion piece has been received from regular advertiser Currencies Direct. For latest news on the movement of the pound against the euro (currently 2.75 per cent down from its best May rate) visit their web site. 

Our correspondent John Smith who has written a number of articles on the Brexit did predict some time ago that in the event that an exit appeared likely that there would be an adverse movement against the pound but the exchange rate would still have to drop considerably to reach the lows of a few years ago, and he believes that even with an exit result, the rate wouldn’t drop that dramatically.