Article / 20 June 2016 at 22:47 GMT

US Market Wrap: Sterling 'poll vaulting' to lofty levels

FX Trade Strategist /


  • Japan: BoJ Monetary Policy minutes 2350 GMT 
  • Australia: House Price Index 0130 GMT 
  • Australia: RBA minutes 0130 GMT                                                         

US data released

  • Nothing of note
Brexit has made a Game of Thrones, Red Wedding, style mess of FX markets. Sterling bulls and bears have been slaughtered and the G10 currencies have been splattered. The bleeding wasn't too bad today but for FX, the UK referendum is the only game in town.

The GBPUSD rally overnight continued unabated throughout the New York session predicated by Brexit polls showing the "remain" camp had pulled even with the "leave" side. Imagine the move, if "remain" had a 10-point lead.

USDJPY retraced all of its overnight gains and is back to Thursday’s levels. EURUSD continued to slide from the overnight peak of 1.1381 and is just above Friday’s close after beating back a mid-morning attempt to rally.

Oil prices gushed higher, rising from $48.55 to $49.42 before slipping at the close. WTI strength has been attributed to an easing of Brexit concerns (dubious), a private report of US oil drawdowns and a Reuters poll predicting a drawdown of 1.9 million barrels this week.

US equity indices closed in the green but were still off their best levels for the day.

 Great leap ... the GBPUSD rally is continuing as Brexit polls show the 'remain' camp
pulling even with the 'leave' side. Photo: iStock

For another view on the Brexit issue, read TradingFloor  contributor, Juhani Huopainen's excellent article: Saxo on Brexit: Markets aren't worried – why not?

– Edited by Gayle Bryant

Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to engage with Saxo Bank's social trading platform.

Missed a day? Here’s what we had to say during our Asian session and our regular European Morning Markets, From the Floor and Mid-session Europe.


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