Is Britain heading for a Brexit?
Investors around the world are starting to feel the pressure as they wait to next week's U.K. referendum on whether to leave the European Union.
New opinion polls show that the ‘leave’ campaign just took the lead.
On top of that, the top selling popular British newspaper – “The Sun” has urged its readers to back Brexit and to leave the EU.
The recent polls freaked out traders, and they're response was to sell stocks and get rid of the British pound currency. The FTSE 100 is down 4% in June, and the pound has lost four cents against the U.S. dollar over the same period.
The uncertainty and the massive potential impact on the economy of a Brexit, is making currency markets particularly nervous.
The upcoming referendum on June 23 is one of the biggest political decision Brits have ever had to make.
Those in favor of leaving the EU say European regulations damages U.K. businesses and leaving would boost the economy. They also say Britain would regain control of its borders and be able to limit immigration.
Those campaigning for the U.K. to stay are worrying about the future life outside the EU. They are afraid that trade and investment would decline, bringing the country to recession, highest unemployment, and cause the pound to go down.
Opinion polls themselves have been moving up and down throughout the campaign, and have a poor track record recently as they just got last year's general election result wrong.
But Brexit supporters seem to have gained ground in recent days. Six new opinion polls have shown, on average, that 51% of voters will opt to leave the EU.