Early trade in New York: sterling gains as risk aversion abates before Brexit vote

Sterling rose on Friday as traders evaluated whether the killing of pro-EU British Member of Parliament Jo Cox may alter the balance of opinion in Britain's referendum on European Union membership. Cox was shot dead on Thursday, leading to the suspension of referendum campaigning. Cox's death increased speculation that Prime Minister David Cameron might push back the vote scheduled for June 23, or that it could boost the pro-EU "Remain" campaign, which in recent days had fallen behind the "Leave" camp in opinion polls.
"This is people adjusting positions because they don't know what's going to happen," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York. "People are unwinding the 'risk off' trades for the most part." The pound tumbled earlier this week on concerns Britain would send a shockwave through global financial markets and European politics by voting to leave the 28-country bloc.
The sterling was last up 0.58 percent at $1.4285, up from Thursday's lows of 1.4010. The yen held near its highest levels against the dollar in almost two years and the strongest against the euro in more than three years on Friday, after the Bank of Japan on Thursday held off from further easing monetary policy. The dollar last stood at 104.20 yen, after strengthening to 103.58 yen on Thursday.