Investing.com - The pound rose around 1% against the dollar and the yen on Friday as fears over the upcoming U.K. referendum on European Union membership subsided as campaigning was suspended following the killing of a pro-EU British lawmaker.
GBP/USD was up 1.09% at 1.4352 late Friday, recovering from the two-month trough of 1.4011 set on Thursday.
GBP/JPY climbed 0.95% to 149.51, pulling back from Thursday’s three-year lows of 145.37.
Campaigning for the Brexit referendum was suspended on Thursday and Friday following the killing of Jo Cox, a Labour Party member and supporter of EU membership.
The pound had tumbled earlier in the week amid fears that a vote to leave the EU would cause turmoil in global financial markets.
Sterling also gained ground against the euro, with EUR/GBP down 0.65% at 0.7852 late Friday.
The dollar ended slightly lower against the yen, with USD/JPY at 104.11.
The pair rose to the day’s highs earlier Friday after Japanese Finance Minister Taro Aso warned that Tokyo Is ready to take action against “one-sided, sharp and speculation-driven” gains in the yen.
The remarks came one day after the Bank of Japan left monetary policy on hold, sending the yen surging to two-year highs against the dollar.
The euro was higher against the dollar, with EUR/USD rising 0.45% to 1.1276.
The single currency also pushed higher against the yen, with EUR/JPY rising 0.35% to 117.46.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.5% at 94.30. The index ended the week down 0.23%.
In the week ahead, investors will be looking ahead to the outcome of Thursday’s Brexit referendum.
Two opinion polls published on Saturday showed that support for the 'Remain' campaign had regained its lead over a vote to leave, while a third showed momentum shifting in favor of a vote to remain in the 28 member bloc.
Investors will also be looking at testimony on monetary policy by Federal Reserve Chair Janet Yellen after the U.S. central bank left interest rates on hold this week and lowered forecast for how much they expect to hike interest rates in the next few years.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, June 20
Canada is to release data on wholesale sales.
Tuesday, June 21
The Reserve Bank of Australia is to publish the minutes of its latest monetary policy meeting, giving investors insight into how officials view the economy and their policy options.
Australia is also to release data on house price inflation.
The U.K. is to release data on public sector borrowing.
In the euro zone, the ZEW Institute is to report on German economic sentiment.
Fed Chair Janet Yellen is to testify on monetary policy before the Senate Banking Committee, in Washington.
Wednesday, June 22
Canada is to publish data on retail sales.
Fed Chair Janet Yellen is to testify on monetary policy before the House Financial Services Committee, in Washington.
The U.S. is to report on existing home sales.
Thursday, June 23
In the U.K., voting in the referendum on EU membership is to take place.
The euro zone is to release data on private sector business activity.
The U.S. is to release data on initial jobless claims and new home sales.
Friday, June 24
The Ifo Institute is to report on German business climate.
The U.S. is to wrap up the week with a report on durable goods orders and revised data on consumer sentiment.