The pound has surged over the last few days due to a mixture of positive UK data and negative data from the euro-zone. Yesterday’s Public Sector Net borrowing (pounds) was increased from 5.8B last month to 6.6B this month. Monday nights release is the main reason behind the pound increasing. From what has been said, it looks as if the turnout of votes to the referendum could be quite low, and those that are likely to vote are going to be the older generations who are more likely to vote in, than they are out. The markets now have confidence that the pound is more likely to stay and there is slightly less uncertainty which is the reason behind the gains.
The referendum continues to draw closer and with the release seen on Monday, it looks as if the rates may continue to climb higher. We have seen a small glimpse of what may come if the UK stays within the EU. A 2% gain across the board in the space of 2 days is rather impressive on the back of talks that we may stay within.
GBPEUR 1.3135
GBPUSD 1.4635
EURUSD 1.1150