Article / 07 June 2016 at 2:17 GMT

Brexit: GBP falls as 'Leave' campaign narrows gap

APAC Sales Trading Desk / Saxo Capital Markets
  • Another tight poll led to the GBP trading back in the middle of the range
  • UK bonds rallied overnight although are still trading at the year's lows
  • Commodity companies rallied following the rise in oil prices

By Saxo APAC Sales Trading

The GBP managed to bounce from its strong support at the 100-day moving average to trade back in the middle of the range following yet another tight poll.

 The UK Secretary of State for Business said leaving the EU could cost
British businesses £34.4 billion. Photo: iStock


The volatilities are still extremely bid in GBP with uncertainties still high surrounding the vote. The 1M continues to reach new highs at 22.2%. The 3M is getting close again to the year high at 16. It is currently trading at 15.2, coming from a low of 12.5 a week ago.

UK rates

UK bonds stopped to rally last night after the last poll gave a lead to the "Remain" camp but are still trading at the lows of the year at 1.28%.


The FTSE was bid last night following the rest of the equity market. Unilever rose 1.9%, the biggest move since March 23. All the commodity companies rallied following the surge in oil prices. RBS led the top losers with a drop of 2.02%.


The UK Secretary of State for Business, Innovation and Skills, Sajid Javid warned that leaving the European Union could cost British businesses GBP 34.4 billion ($49.7 billion) in “non-tariff barriers” to trade as a result of being outside the single market.

– Edited by Gayle Bryant

For trade strategies, comments and research regarding the UK referendum on staying in the European Union, please see


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail