The pound strengthened on Wednesday in reaction to news that the latest Brexit poll showed those wanting Britain to remain in the European Union had an 18-point lead versus those who want to leave the bloc.
The news improved sentiment for sterling which rose to a three-month high against a trade-weighted basket of currencies.
With just over a month left before the June 23 referendum, the Ipsos-Mori poll, commissioned by London’s Evening Standard newspaper, found 55 percent of those surveyed supported staying in the EU, while 37 percent wanted to leave. Meanwhile. Another poll by earlier in the day by YouGov poll, gave the “remain” camp a 4-point lead.
The pound strengthened to a ten-week high versus the euro, as EURGBP fell to 77.20 pence.
Against the dollar, the pound rose to a two-week high of $1.4600, bouncing from an earlier low of $1.4403.
Concerns about a possible Brexit have weighed on the British currency since late last year, leading to an 8 percent fall in the past six months on a trade-weighted basis. But since hitting a 2-1/2-year low last month, sterling has recovered by almost 4 percent as Brexit concerns are diminishing, the more polls show the remain camp pushing ahead of the leave camp.
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