Global stocks rose sharply today and sterling strengthened broadly while safe-havens including the yen and gold retreated, after polls showed support for Britain staying in the European Union regaining momentum before Thursday's referendum.
Sterling rose half a percent in early London trading today and the euro added to gains in the past 24 hours on expectations that the killing of a pro-European Union British lawmaker may alter the balance of opinion in Britain's referendum on EU membership.
The euro dived back below $1.12 on Tuesday after European Central Bank officials said the bank could take further action to lower euro zone bond yields and boost inflation, potentially flooding the market with yet more euros.
Sterling was the biggest gainer amongst major currencies on Friday, hitting its highest in over two months against the dollar, on relief that the Conservative Party was set for a surprise outright win at the British national election.
The pound rose versus the dollar, extending a gain from the end of last week, as a gauge of retail sales exceeded analysts’ forecasts and trading patterns suggested the U.K. currency was due to halt its downward trend.