Pound suffers biggest single day drop since 2008 crisis

After London mayor Boris Johnson announced that he would be campaigning in favor of an exit from the union, good mood turned sour and Pound continued to drop throughout the day on Monday, even after suffering a big gap down opening.

Pacific Investment Management Company (PIMCO) announced that there still exists 40% possibility that Britain will exit EU, even after the deal. At one point, Pound was down as much as 2.4%, however recovered heading into New York session and finally closed down -1.8%. Today once again Pound is clearly under pressure from sellers and further fall seems very much likely.

According to data from Bloomberg, the drop was biggest since 20th January, 2009, when Pound dropped -3.41% against Dollar.

Historically speaking, Pound suffered biggest drop back in 1992, known as black Wednesday. Then under intense pressure Bank of England had to withdraw from its peg range with German Mark.

Pound, move since the deal has been kind of a miniature show of the devastation that awaits if Britons vote to leave EU.

Pound is currently trading at 1.413 against Dollar, down -0.1% for the day so far.