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Cameron accuses Leave of "fantasy politics"

Pound falls as Brexit campaign gathers support

David CameronSterling has fallen on the back of two surveys showing a rise in support for Britain leaving the European Union.

Backing for Brexit saw the pound hit a three-week low against the dollar and the euro.

At midday sterling fell 1.5 cents to below $1.44. Against the euro the pound was 0.46% lower at €1.27.

Investors sold sterling after a YouGov poll found 45% favoured the UK leaving the EU while an ICM survey showed 48% wanting Britain to quit the 28-member bloc.

Hussein Sayed, chief market strategist at global online broker FXTM said: “It is becoming extremely worrying for the financial markets and we expect more sterling losses if polls continue to indicate a Brexit lead.”

 

Traders now expect some volatility in currencies and equities as both sides in the debate intensify their campaigns ahead of the vote on 23 June.

There is some concern among EU supporters that the pound and the London stock market may plunge if there is a vote to withdraw.

The Bank of England has already said that uncertainty over the EU referendum was affecting the pound.

Leader of the Leave campaign Boris Johnson said he was unconcerned by short term fluctuations on the markets.

“Believe me, in the long term you can look forward to fantastic success for this country,” he said.

Prime Minister David Cameron (pictured) accused the Out campaign of promoting “fantasy politics” and said it was time for them to set out what a Brexit Britain would look like.

He said they were being “undemocratic and reckless”, adding that Brexit would “put a bomb under our economy”.



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