The pound is sensitive to swings in sentiment as to whether the
At the moment the pound is rallying, with markets seeing a stronger possibility of a remain vote winning.
Around 11:10 a.m. BST (6:10 a.m. ET) sterling is around 1.2% higher against the dollar, to trade at $1.4880.
That is despite recent polls showing the result is too close to call. Currency traders have been watching the betting markets for a sense of how the vote might go. At the moment, the Betfair betting market is showing an 86% chance of a remain win. This is great if you are about to go on holiday.
The pound will most likely get a bump against the dollar and the euro, as uncertainty clears, rising by as much as 6%, according to Bill O'Neill at UBS Wealth Management.
While that's good upside, it is not worth the risk of holding on to your pounds. In the case of a Leave vote, or Brexit, the pound could drop suddenly by as much as 15% or more, according to HSBC.
George Soros, who famously made £1 billion betting against the pound on "Black Wednesday," said "that after a Brexit vote the pound would fall by at least 15% and possibly more than 20%." And analysts at Credit Suisse said on Wednesday, several factors could conspire to make the fall-out even worse.
So, if you are going on holiday soon and do not want to take the huge downside risk out there at the moment, now might be a good time to hit the bureau de change.
Here is a graphic explaining everything about the referendum:
Business Insider