Brexit: GBPUSD on a run as remain camp digs in
- GBPUSD on a roll as new polls point to a change in sentiment against leaving
- Expect volatility over the coming days until Thursday when the UK votes
- Enormous spreads make trading in GBPUSD in Asia time difficult
By Saxo APAC Sales Trading
New polls favouring the "remain camp" over the weekend are pushing GBPUSD much higher from 1.4000 of two sessions ago, all the way back above the 100 Day Moving Average and very close again to the big resistance at the 200 DMA. It’s going to be extremely volatile this week with new polls coming closer to the vote.
- Volatility: The GBP movements are bid and super wide. Few cable prices in Asia today but things are wide enough so that price is effectively not-dealable. 2w cable is 20% wide and 1m is 5% wide. But in general, market seems to be starting to discount the Brexit probability and vega seems offered across pairs.
- UK Rates: Rates rallied on Friday following the rest of Europe but expect a gap higher at the open today with the rally in GBP.
- Equities: The FTSE 100 rallied 1.2% helped by Standard Chartered bank up 4.5% to 521.40p and Barclays up 4%.
-- Edited by Adam Courtenay
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