The Sterling Seesaws on Conflicting Polls

Points to consider with the Sterling Pound:

• In early trade the Sterling Pound hit a session and a lowest level since the open of the trading week.
• Three out of four Brexit polls show the Remain Camp
• Volatility to continue till the vote on June 23.

The Sterling Dollar, or British Pound, continued to face stiff volatility this morning as new Brexit polls crossed the news wires. The Pound then gapped higher at the open as an ORB survey showed that 53 percent of those surveyed want to stay in the European Union (EU), while 46 percent want to leave the EU. This caused the Sterling to spike higher.

Then two more polls came out putting the Remain campaign in the lead. The NatCen survey showed that 53 percent want to stay and the IBRIS poll showed that 52 percent of the participant want to stay in the EU. This jubilance was short lived, as a closely watched YouGov poll hit the news wires. This poll showed that 44 percent want to leave the EU while only 42 percent want to stay. The GBP/USD reacted swiftly and fell to its lowest level since opening this week. Keep in mind, this is only Tuesday.

Volatility to Rule the Sterling and Forex Markets

In only 30 minutes, during Asian trading hours, the British Pound gained 0.3 percent only to fall 0.6 percent. The GBP/USD ended up barely changed for the session.

The people of the United Kingdom will vote on June 23 and this will be one of the biggest sources of Forex and financial market volatility across the globe. As we saw today, and this will continue all week, these polls will give us nothing but breakneck volatility. As traders get ready for Europe trading hours then United States hours, more of the same volatility lies ahead.