Brexit: Calm settles over forex, equities markets
- GBP appears to be trading down whether or not Brexit happens
- The 10-year Gilt yield continues to fall, down three basis points
- The FTSE settles, moving in line with other European bourses
By Saxo APAC Sales Trading
It was a very quiet day in GBP which trading closer to the support at $1.4343, the 100 Day Moving Average. Expect some strong support at this level.
- Volatility: Vols are settling down at the highs after the strong rally seen in the past two days and we are actually seeing more and more ideas for downside trades in GBP - no matter how the Brexit vote ends up. Please be aware that the volatilities market is wide.
- UK Rates: The 10-year Gilt yield continues to drop, down 3 basis points yesterday to close at 1.342% - the lowest level since April 7.
- Equities: The FTSE moved in line with its European counterparts following the European Central Bank meeting and the "no-deal" from Opec, closing 0.1% lower.
The UK Chancellor of the Exchequer, George Osborne, is expected to say hundreds of thousands of jobs may be lost in the service sector, the main driver of Britain’s economy, if the country leaves the European Union.
-- Edited by Adam Courtenay
Saxo research on Brexit - Please go to our website for trade strategies, comments and research