GBP remains under pressure ahead of referendum – Danske Bank

Chief Analyst at Danske Bank Jens Sorensen has assessed the recent price action in the Sterling.

Key Quotes

“GBP dived substantially yesterday on a released poll showing a surprise lead for the ‘leave’ camp”.

“GBP/USD fell from 1.4650 to 1.4480 currently, while EUR/GBP rose more than one big figure to 0.7680 during yesterday’s session”.

“Polls recently had been showing the ‘remain’ camp to be comfortably in the lead and GBP has performed strongly over the past few weeks as Brexit risks have been priced lower”.

“Yesterday’s price actions underline that polls are likely to remain key driver for GBP going into the referendum on 23 June”.

“We still see risks skewed to the upside for EUR/GBP and expect volatility to increase as the Election Day approaches”.