Article / 20 June 2016 at 2:47 GMT

Brexit: GBPUSD on a run as remain camp digs in

APAC Sales Trading Desk / Saxo Capital Markets
  • 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.
 Expect volatility this week in all British assets, but mostly it'll be all about Sterling. Photo: iStock

  • 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%.
Research and comments:  Expect the campaign to be more heated in the lead-up to the Brexit vote.

-- Edited by Adam Courtenay

Saxo Research on Brexit: Check out our website for trade strategies, comments and research. 

Relevant articles for you


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