Brexit Angst Returns as Pound’s Surge Falters With Polls Divided

The pound fell against 31 major peers as the U.K.’s referendum on European Union membership remained too close to call two days before the vote.

Sterling faltered after a two-day, 3.5 percent rally before Thursday’s historic vote, with separate polls showing leads for both sides. Billionaire investor George Soros, who made $1 billion betting on the pound’s devaluation in 1992, warned that the possibility of the U.K. leaving the EU is still a real risk that could cut currency’s value by a fifth.

“There’s quite a lot of volatility in the pound now with investors repositioning after the massive rally,” said Angus Nicholson, a market analyst at IG Ltd in Melbourne said. “There is a lot of uncertainty with the Brexit vote and ‘Remain’ is not a given yet.”

The U.K. currency slipped 0.4 percent to $1.4646 at 10:49 a.m. in Tokyo, after surging 2.4 percent Monday, its biggest gain since 2008.

A YouGov poll of 1,652 voters for the Times newspaper published late on Monday showed “Leave” at 44 percent and 42 percent for “Remain.” A survey of 800 people by ORB for the Daily Telegraph had “Remain” at 53 percent and “Leave” at 46 percent among those certain to vote.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE