British Pound Soars As Polls Show Support For "Brexit" Ebbing

Talking Points:

• British Pound, Euro rise as polls show support for “Brexit” ebbing
• Yen falls, commodity Dollars rise as market-wide risk appetite firms
• European, US stock index futures hint risk-on trade set to continue

The British Pound soared at the start of the week and the Euro followed upward after new polling data released over the weekend showed ebbing support for “Brexit” at this week’s UK EU membership referendum. Survation reported a 45 to 42 preference for a “Remain” vote while an analogous poll from YouGov gave the status quo a 44 to 43 percent lead.

The outcomes likewise bolstered risk appetite. The sentiment-linked Australian, Canadian and New Zealand Dollars tracked stocks upward while the anti-risk Japanese Yen plunged. The likewise haven-linked US Dollar is also under pressure. Gold prices and US 10-year Treasury futures likewise swooned as capital flowed away from safety-seeking assets.

Looking ahead, the absence of high-profile event means sentiment trends are likely to remain at the forefront. Furthermore, it suggests there are relatively few stumbling blocks in the way to break existing momentum. Indeed, European and US index futures are pointing sharply higher, hinting that the risk-on mood is poised to carry forward.

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