The pound has swung wildly as ‘Leave’ leads in early returns from Brexit vote….reports Asian Lite News
Britons voting to leave the European Union outnumbered “Remain” partisans by a margin of 6,931 in the first returns from Thursday’s referendum.
“Leave” carried the day in the northeastern English city of Sunderland by 61 per cent to 39 per cent, amid turnout of 65 per cent. In Newcastle, just 21 km away, Remain prevailed by 50.7 per cent to 49.3 per cent with turnout of nearly 68 per cent, EFE news agency reported.
Voters in Gibraltar were massively in favour of staying in the EU and the Orkney Islands also ended up in the Remain column.
The city of Swindon, in the southwest, voted Leave by 55 per cent to 45 per cent. Voters in Broxbourne, a suburb of London, likewise opted for a British exit — Brexit — from the EU.
A YouGov poll released right after the polls closed showed the Remain side prevailing by 52 per cent to 48 per cent.
The pound has swung wildly as traders reacted to the latest results from Britain’s referendum on the European Union (EU) membership, BBC reported.
Before the results started to come in, the pound rose as high as $1.50, as traders bet on a ‘Remain’ victory.
But after strong ‘Leave’ votes in Sunderland and Newcastle declared early Friday, it tumbled to $1.43 and then took another dive at around 2 a.m. to $1.41.
Traders said they have never seen such dramatic moves since the financial crisis of 2008.
“These moves are concerning and bring back pretty painful memories of 2008,” said Jeremy Cook, chief economist at World First.
“The pound didn’t have this bad a day (against the USD) in the global financial crisis and the moves by the bookies to price Leave as the favourite is killing the pound. News from Wales is the most concerning at the moment alongside the London turnout dynamics,” he added.
Analysts warned that the moves have been amplified by thin trading.
Last week the pound fell as low as $1.40 as traders tracked polls suggesting a flagging ‘Remain’ campaign.