The Pound has continued to hold the strength from the weekend. Yesterday, Sterling appreciated 0.2 percent against the USD, to a five month high of $1.4783. This now represents a 3.4 percent jump over the past five sessions. Furthermore, the bookmakers odds now imply that there is only a one-in-four chance that Britons will opt to leave the EU in Thursday’s Referendum. However, this drop from 43 percent to 26 percent a week ago could be dangerously optimistic. Many experts are still expecting a 50-50 split.
Federal Reserve Chair, Janet Yellen, is due to address lawmakers for a second day today. Following yesterday’s comments that improvements in the labor market have slowed, suggesting that the Fed’s more cautious approach remains appropriate. Before a further tightening of monetary policy, the Fed must be sure of U.S. economic growth and that there is no shock in the outcome of Britain’s June 23rd vote.