The pound has fallen to a 3-week low against the dollar after two opinion polls pointed to a widening lead for the “Vote Leave” campaign in the upcoming referendum on Britain’s European Union membership.
A YouGov poll for ITV’s Good Morning Britain programme on Monday showed that 45% of voters would currently chose to leave the EU, compared to just 41% to remain in the 28-nation bloc, Bloomberg reports. Meanwhile, another survey conducted by pollster TNS showed support for “Leave” at 43% to 41% pipping for “Remain,” according to Reuters.
The signs of growing support for a so-called Brexit — a British exit from the European Union — have sent sterling tumbling against the dollar. The pound is down 1.01% to 1.4373 against the dollar at 7.20 a.m. BST (2.20 a.m. ET), having touched a 3-week low of 1.4353 in early morning trade.
Michael Hewson, chief market analyst at CMC Markets, says in an emailed statement on Monday morning: “Friday’s rebound through the 1.4500 level to 1.4580 proved to be somewhat short lived and as such the risk remains for a return towards the May lows at 1.4330. Below that we have trend line support at 1.4270 from the lows this year.”
Public perception has yet to catch up to the ITV and TNS polls. A survey out on Friday from Populus showed that the majority of people who intend to vote expect Remain to be on the winning side.