The latest ICM/Guardian online poll showed the Leave camp was leading with 49% vs 44% for the Remain, while the phone poll showed the Leave with 50% against 45% for the Remain in the European Union. The cable can go either way, but growing sentiment is driving panic.
Below is a chart tracking 40 years of GBP/USD pricing. Notice the yellow flag on the lowest of levels.
Sterling hit a low this February. And while hovering dangerously close to another low, the media still seems to be forgetful. Sterling could drop much more despite the referendum outcome. GBP/USD hit a six-year low on February 21, 2016 and hit 1.386 on February 28, 2016.
Will it drop lower? The market turmoil, continued lack of growth and empahsis on the US markets and election will stress the situation more. Couple this with global uncertainty and you have a perfect storm to sink sterling and the euro to ten-year summer lows.
Traders and economists are mixed at best, but arguments that call for a lower euro and a lower sterling make sense.
