Global markets have been reacting positively to several opinion polls over the weekend that showed that the remain camp was regaining momentum ahead of the referendum on European Union membership on Thursday.
Public opinion appears to have turned since the murder of pro-EU Labour MP Jo Cox last Thursday which led to the suspension of campaigning by both sides. However, pollsters claim that the death has had little impact on sentiment and the remain camp was always likely to gain support in the last few days running up to the vote. Campaigning has now resumed.
The British pound has climbed as the Brexit concerns have eased, reaching $1.4679 at the end of Europe's trading session, compared to levels of around $1.40 on Thursday. Oil prices also extended gains, due in part to the weaker dollar and Brexit concerns easing. Around the close, Brent hovered at $50.44, while U.S. crude was trading above 2.5 percent, around $49.30.
Despite Monday's rally, analysts said any further move in the Brexit polls could cause further moves either way in markets.
"The market will surely gyrate some more in the next few days as any shift in that position triggers an exaggerated reaction, not just for sterling but for wider risk sentiment," Kit Juckes, global head of FX strategy at Societe Generale, said in a note.