Brexit Votes Lead in Polls, GBP Extends Run to Downside

Talks about the potential exit of the United Kingdom from the European Union continue to rattle markets. As a result, the Great Britain pound extended its move to the downside during Tuesday’s trading.
According to the latest polls, those who want Britain out of the EU lead as of now. That does not bode well for the economy and the currency of the UK. While some economists argue that independence would be beneficial to the country in the long run, it is likely to be very detrimental in the short term.
Economic data released during Tuesday’s session were not helpful to the sterling either. Britain’s Consumer Price Index rose 0.3% in May, the same as in April, while analysts were counting on at least a 0.4% increase.
GBP/USD dropped 1.1% from 1.4263 to 1.4110 as of 22:53 GMT today, touching the lowest level since April 8 intraday. GBP/JPY slid from 151.54 to 149.60, trading near the lowest level since August 2013. EUR/GBP traded at 0.7942, not far from the opening level of 0.7933.

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