GBP/NZD rates spiked towards 2.07 during yesterday’s trading and held its position overnight. This improvement came in line with spikes for the Pound against all of the major currencies, with momentum once again building for the Remain camp ahead of the UK EU referendum on Thursday.
Looking back over the past few weeks and we have seen the momentum shift from one side to the other. This uncertainty is only likely to increase in the build up to this Thursday’s vote and therefore I would be extremely tempted to protect my position ahead of it. The markets are reacting to rumours and we could easily see another poll indicating the Leave camp are ahead again and the gains we’ve seen over the past 24 hours could evaporate just as quickly.
I believe there are a number of factors that have caused the tide to turn in favour of the Remain camp, not least the Sunday Times and YouGov Poll. This indicated a narrow lead once again for the Remain camp, which has boosted market confidence and in turn the Pounds value has risen. Last week’s awful killing of respected MP Jo Cox, has also been attributed to a change in perception regarding the Leave campaign. Add to this Nigel Farage’s questionable immigration poster and we can start to understand why some people’s opinions may have changed.
This is not the first time the Pound has spiked and whilst the odds on a Remain vote have improved, I would be too nervous to leave any market positions open under such strenuous conditions.
If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements ahead of this Thursday’s vote, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on [email protected]