GBP/USD: bearish, watching the Brexit odds and polls - Scotiabank

Analysts at Scotiabank explained that GBP/USD slipped as markets react to the tightening in the UK referendum race.

Key Quotes:

"Momentum appears to be with the Leave campaign at the moment, suggesting their focus on immigration, rather than the Remain’s warnings about the economy, are resonating more with voters. The Sun newspaper’s decision to side with the Leave campaign is important, as it is considered influential.

But most of its readers were likely to favour Leave in any. Poll developments in the past 24 hours have seen bookmaker odds on Remain and Leave reduced to 4/7 and 11/8 respectively, implying a 64% probability of Remain winning and a 42% probability of Leave prevailing – the largest in the campaign so far. On current form, the odds could reflect a 50/50 outcome in the next few days."