“Bremain” rather then “Brexit”
The British pound was up against the US dollar and Japanese yen, as concerns over the possible withdrawal of Great Britain from the EU declined.
Referendum campain was suspended on Thursday and Friday after the assassination of parliamentarian Joe Cox, who is a representative of the opposition Labour Party, in favor of maintaining the UK as part of trade and political bloc.
The British pound rose, because, according to investors, campain suspension will negatively affect the position of the EU exit supporters who have or had good support among the population, based on the results of las weeks polls.
"Investors are quick to realize that the death of Joe Cox has become a new factor in the situation, while a growing number of people acted in support of the release of the trade and political bloc," - analysts at Brown Brothers Harriman wrote.
Latest polls published on weekend show the remain camp in lead and the gbp pairs gaped up at the opening.
According to betting company Betfair Group Ltd., the likelihood that the majority of Britons would vote to leave the EU on June 23 is now below 30%, after 40% before the attack on the MP.
On the Gbp/Usd chart we see a nicely done accumulation phase of buy orders in the 1.42-1.41 area followed by a profit release phase, in which we are now.