We already explained why the pound had the potential to leap on a shift in weekend polls in favor of the Remain camp. Indeed, the pound took quite a leap and cable is already almost 600 pips above the lows.
And also the euro is tagging along, with high resistance eyed.
The murder of UK MP Jo Cox on Thursday could have been a turning point. More evidence emerges that the killer was politically motivated. In addition, the shock from the killing also led many to rethink their position. Some other polls show that a halt in the lean to Leave had already begun a day or two ahead of the tragic event. Perhaps the Brexiteers peaked too early.
In any case, as more and more polls mount, the momentum seems to be with the Remain camp. From a 5% lead just several days ago for Brexit, we are back to a dead heat tie at 44% according to the FT’s Brexit tracker.
The euro also has a lot to lose from a Brexit and a lot to gain from a Bremain. Indeed, there is a clear weekend gap.
From the lows of 1.1130, the pair managed to settle above 1.1250 at 1.1284 on Friday. The fresh open on Monday saw totally different levels: an easy leap above 1.13 and a high of 1.1384 so far.
Some support awaits at 1.1335 but the pair is looking upwards. Weak resistance awaits at 1.1410, with a follow up at 1.1460, which is already a strong line after capping the pair in both 2015 and 2016.
Further above, the peak of 1.1616 seen in 2016 and the high of 1.1712 achieved in August 2015 are the next levels to watch.
Here is the EUR/USD chart:
More:
- Is your broker Brexit ready?
- Brexit or Bremain – all the updates
