GBP soars on falling “Leave” odds – RBC CM

Sue Trinh, Senior Currency Strategist at RBC Capital Markets, suggests that it was very much “risk-on” overnight thanks to a huge rally in GBP of almost 300 pts on lengthening odds of a “Leave” vote.

Key Quotes

“A poll from Survation taken on Friday and Saturday showed 45% for “Remain” and 42% for “Leave”, reversing positions from its previous survey. GBP spiked up to a two-week high above 1.46, consistent with the fall in bookmakers’ odds, with Oddschecker “Leave” odds down to 30–31% from a record high last week of 43%.

The Skandis rode GBP’s coattails, with most other majors enjoying gains of ~0.5–1%. JPY was predictably the worst performer.”