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Sterling Soars, the Dollar Slips as Brexit Fears Ease

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The sterling soared and the dollar slipped against a basket of major currencies on Monday, as fears of a Brexit eased and boosted market sentiment.

A weekend poll showed the “Remain” campaign regaining its ground just days before the U.K. votes in a controversial referendum on whether to exit the European Union.

The pound moved sharply higher against the dollar, with GBP/USD up 1.81% to 1.4681.

The euro slipped against the pound, with EUR/GBP down 1.49% at 0.7736.

Two opinion polls released on Saturday show regained support for the “Remain” campaign. A third poll also showed a shift towards a vote in favor of staying in the 28-member bloc.

The poll results lifted the pound and market sentiment, which were both under pressure over concerns that the U.K. would vote to leave the EU. The move, economists predict, could have adverse effects on global financial markets.

Brexit referendum campaigning resumed on Sunday after a three-day break following the death of Labour Party member and EU membership supporter Jo Cox.

The dollar is still under pressure following the Federal Reserve’s decision to hold interest rates. The committee also cut back its forecast for the number of rate hikes it expects in the next few years.

Investors shifted their focus to Fed Chair Janet Yellen, who will give her monetary policy testimony on Tuesday and Wednesday.

The dollar was 0.38% higher against the yen, climbing to 104.57. The New Zealand and Australian dollars also advanced against the greenback, with NZD/USD up 1.07% at 0.7115 and AUD/USD climbing 0.80% to 0.7454.

The dollar slid against the Canadian dollar, falling 0.55% to 1.2824.

The U.S. dollar index slipped 0.63% to 93.71.

The euro advanced 0.56% against the dollar, climbing to 1.1340. The single currency also moved ahead of the yen by 0.9%, reaching 118.51.