In or Out? The Final Day

European Markets were in the green again, extending their three-day run, after remarks by Federal Reserve Chairwoman Janet Yellen, saying that a cautious approach is appropriate when it comes to hiking the interest rates and that Britain leaving the EU leads to “an era of uncertainty”. Britain’s FTSE 100 Index has rebounded around 5.3% from its mid-June low. The British Pound gained against other major currencies. Crude oil topped $50 a barrel while metals also were in positive territory.

The Final Day

Even on the final day of campaigning before the referendum on EU membership, Britain was in disagreement between opinion polls and financial markets. Investors are betting on a victory for the “remain” campaign, led by Prime Minister David Cameron. Meanwhile, the opinion polls say the race is too close, after the recent swing towards the “leave” vote, which appeared to lose momentum after the murder of politician Jo Cox.

Gold

Gold declined to levels from nearly two weeks ago. Before the fall, gold almost reached a two-year high, hitting levels from August 2014 eight days ago on fears of a “Leave” vote. The decrease in the precious metal price was expected as the risk of Britain abandoning its European Union membership faded on recent poll results.

German and UK Industry

According to latest surveys, over one-third of German industrial firms is concerned about the possible negative effects. Around a third of companies from Europe’s largest economy fear the effects of a Brexit, and they are mostly companies with more than 500 employees. However, 61% of German firms believe they will see no impact on their business even if the U.K. leaves the EU.

FTSE leaders, business bosses of more than half of Britain’s largest companies have joined forces in support of the campaign to keep Britain in the EU. A Leave vote would damage the British economy and mean uncertainty for their companies, less trade with Europe and fewer jobs. In addition, terms of trade have to be “reset” and began from scratch. This will have a more severe impact on the smaller companies.

Currency and UK Voyagers

If Britain votes to stay in the EU, then the pound is expected to spike to a level, which may well be one of the highest this year. On the other hand, if the “leave” vote has the upper hand, all signs can suggest a massive immediate drop in the value of the pound, but this would be a result of an initial sell-off, and may bounce back when things start to cool off.

UK Holiday Makers have been rushing to get foreign currency ahead of the vote. The UK based, Post Office Ltd reported a surge in the sale of the currency of around 74%, when compared to the same period a year before. Travelers are locking the exchange rates ahead of the vote, as according to some analysts it might swipe a big chunk of the value of the pound. In fact, some money transfer websites will be suspending the British Pound Transfers ahead of the currency volatility.