Pound slides sharply against US Dollar after poll gives Brexit lead

An ICM phone poll shows Brexit edging ahead in the referendum campaign

Jon Stone
Wednesday 01 June 2016 09:23
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The pound slid sharply against the dollar on the news
The pound slid sharply against the dollar on the news

The pound has fallen sharply against the dollar after a new poll showing the Leave campaign ahead in the EU referendum.

An ICM poll published on Tuesday afternoon found Brexit leading by 52 per cent to 48 per cent.

The survey is the first normal-methodology phone poll to show such a result; within minutes of the newspaper pushing the poll, Sterling fell sharply by around a cent.

EU Referendum: Latest Poll

Currency traders are watching polls carefully and the International Monetary Fund chief Christine Lagarde has warned that Brexit could wipe 20 per cent off the value of Sterling.

Last November a report by Bank of America warned that Britain leaving the EU would likely trigger a run on the pound.

After then Mayor of London Boris Johnson decided to back Brexit the pound hit a seven-year low against the dollar.

The poll for the Guardian comes with a health warning, however, as they were conducted over the bank holiday weekend – which is difficult to poll because many people tend to be away.

“Polling over a bank holiday weekend often throws up ‘interesting’ results,” Tom Mludzinski, director of political polling at ComRes said.

“Will need more to confirm any real trend.”

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Lower currency values mean comparatively higher prices for British tourists when going abroad; however British exports become comparably cheaper to buy in other countries.

Imported goods would also become more expensive for UK consumers.

The ICM poll follows an ORB phone poll conducted last week which also showed the Leave campaign making progress after having focused more specifically on immigration as an issue.

That poll still had the Remain campaign ahead, albeit by a narrower margin.

What to believe about the EU referendum

The EU referendum will take place on 23 June this year.

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