One of the most significant economic and geopolitical issues that has grabbed headlines all over the world over the last few weeks has been the upcoming referendum in the United Kingdom that would decide whether the nation is going to be a part of the European Union (EU) anymore. According to most experts, there would be grave economic upheavals if the United Kingdom voted for 'leave' and over the past week or so, 'Brexit' had gained an advantage that had stoked fears in the currency markets. However, the pound reached its highest valuation since the year 2008 as Brexit fears eased after polls revealed that the referendum to 'remain' in the European Union has regained the lead yet again.
According to a report on Bloomberg, "Sterling advanced 1.8 percent to $1.4612 as of 11:46 a.m. in London, and earlier had increased as much as 2.2 percent, the biggest gain since December 2008. That adds to its 1.1 percent increase on Friday, when it completed the first weekly advance this month. A one-week gauge of implied volatility for the pound versus the dollar dropped to 38.5 percent from a record close of 47.87 percent in the previous session."
However, it seems that the swing towards 'remain' was down to the unfortunate murder of Labour MP Jo Cox last week. In the same report in Bloomberg, it is stated, "Sterling's volatility diminished as surveys taken after the murder of pro-EU lawmaker Jo Cox showed the "Remain" group recovering lost ground. It was by 45 percent and the "Leave" campaign by 42 percent, in a poll from Survation taken June 17-18 for the Mail on Sunday newspaper. That was a reversal of positions from Survation's previous poll. The pound climbed at the end of last week after campaigning for this Thursday's referendum was suspended following Cox's death. She was attacked June 16." The referendum is going to rake place on 23rd of June and there is absolutely no doubt in anyone's mind that it would not only be a significant event for the British people but also for economies in other parts of the world and in Europe.