Markets remain jittery as City prepares for the fallout from referendum vote

AFTER hitting its highest level of the year Sterling ran out of steam today as traders continued to bet on Britain voting to remain in the EU.

The pound hit 1.48 US dollars, building on its rise all through the week after opinion poll data showed a narrow lead for the Remain camp. It has since eased to 1.47 US dollars.

However, experts believe that it is the bookmakers’ odds that currency traders are following.

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FXTM chief market strategist Hussein Sayed said: “The markets are being completely reliant on the predictions from the bookies, which strongly expect Remain to win the referendum. If history is any indication, the bookmakers will get it right.

“They got it right on the general election last year, and on the Scottish referendum in September 2014, which made them a more reliable source than the polls.”

The pound has now surged by 4 per cent over the past seven days, helping it reclaim all its losses seen since the start of the year.

Famous currency trader George Soros said on Tuesday that a vote to leave the EU will trigger a plunge in the pound greater than Black Wednesday in 1992, when sterling plunged 15 per cent.

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Elsewhere in the City the FTSE 100 dumped the bulk of the day’s gains, losing a percentage point and a half in the space of four hours.

Market traders were gearing up for the most important night of their careers and could even stay chained to their desks over the weekend if Britain votes for Brexit, City experts are forecasting.

Britain’s biggest banks are drafting in staff to work through the night on Thursday into Friday as they gear up for the EU referendum result.

Barclays, Lloyds Banking Group and US giants such as JP Morgan Chase and Citi are among those calling in senior traders and workers.

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