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


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