The pound soared against the other major currencies on Monday with Britain’s European Union membership concerns waning after the weekend polls revealed that the “Remain” campaign is regaining ground ahead of the Brexit referendum.
GBP/USD rallied 1.81% to a three-week peak of 1.4681, extending gains from its previous two-month trough of 1.4011 on Thursday.
The pound also showed strong gains against the Japanese yen. GBP/JPY advanced 2.23% to 152.84, recovering from the three-year lows on 145.37 on Thursday as well.
EUR/GBP retreated 1.49% to 0.7736.
Meanwhile, the greenback climbed against the yen, with USD/JPY up 0.38% to 104.57. This result whisked the currency pair from the almost two-year low of 103/53 hit on Thursday after the Bank of Japan put monetary policy on hold, and thus disappointing market expectations for more stimuli.
The dollar turned lower against the euro, with EUR/USD increasing 0.56% at 1.1340. EUR/JPY, meanwhile, was also up 0.9% at 118.51, rebounding from Thursday’s three-year lows of 115.49.
The US dollar index was down 0.63% at 93.71 as the stronger euro weighed.
Two opinion polls published on Saturday revealed that the “Remain” campaign was leading ahead of the vote to leave. A third poll showed momentum shifting in favor to remain in the EU.
This change in polls boosted the pound and relived risk sentiment—which had been hit hard by Brexit fears would cause turmoil in global financial markets.
After a three-day hiatus following the murder of Jo Cox, a Labour Party member and EU membership supporter, the campaigning for the Brexit referendum resumed on Sunday. The referendum is set on Thursday, June 23, 2016.
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