Daily Market Report 21/06/16

GBP

Yesterday the Pound rose more than three cents against a basket of currencies recording its biggest one day jump in eight years since 11th September 2008. The increase came after several polls over the weekend suggested the leave campaign may have lost some momentum following last week’s events. The murder of MP Jo Cox seems to have ignited  a preference in the non decides to bremain.
 
Monday's shift in sentiment has boosted shares in banks and builders, which are seen as more vulnerable to damage if the UK votes to leave the EU. Lloyds Banking Group and Barclays both rose more than 6% whilst two of the UK's largest house builders  Barratt and Taylor Wimpey, saw their shares jump by nearly 7%. Analysts still expect  more volatility this week. Strategist Petr Krpata said in a research note that "Following the large sterling moves over last two days and limited risk premium priced in at this point, sterling now looks more vulnerable to negative surprise from the polls,"
 
Yesterday George Soros has also warned that a vote on Thursday for Britain to leave the EU would trigger a bigger and more damaging fall for sterling than the day he forced Britain out of the Exchange Rate Mechanism almost a quarter of a century ago. “Sterling is almost ­certain to fall steeply and quickly if leave wins the referendum,” Soros said. “I would expect this devaluation to be bigger and also more disruptive than the 15% ­devaluation that occurred in September 1992”

Key Announcements

GBP -09:30: Public Sector Net Borrowing( May) expected to increase from £6.582B to £9.500B
 
EUR -14:00: President Mario Draghi’s Speech
 
USD -15:00: Janet Yellen testifies before congress