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The Brexit effect on the pound | Travelex currency commentary

21st June 2016

Commentary from David Swann, Head of Pricing at Travelex:

"No one can know for sure what will happen come Friday when the referendum results are announced or how the results will impact the British economy.

However, generally speaking, since referendum campaigning began in February, we've noticed a correlation with the pound strengthening against major currencies like the euro and the US dollar when the polls have indicated that the 'remain' vote is in the lead and vice versa.

During the campaigning period, the pound has been really volatile against major currencies. Even if you look at today's (Tuesday 21st June) rate versus how it was over the weekend, the pound is up 2.3 percent against the US dollar and 1.4 percent against the euro. Which, by market standards is a significant shift over a short amount of time.

So when is the best time to buy? If only I had a crystal ball!"