Brexit Concerns Driving the Markets; Largest One Day Rally in Cable in Seven Years, June 20th
Cable has been taking a beating over the past two weeks as Brexit concerns have been on the rise. Many polls appeared recently showing the Leave campaign with a small advantage over Remain. During this time Cable reached a most recent low of 1.40116last Thursday, after failing to break 1.4740 on the upside towards the end of May.
Yesterday, news hit the markets of the latest poll where the Remain campaign was now showing a lead. The market reacted favorably and the price of GBPUSD went from Friday’s close at 1.4376 to a high yesterday of 1.47071. That one day jump was Sterling’s largest rally against the US dollar in seven years.
As we get closer to the Brexit referendum on Thursday 23rd we may be in for a bumpy ride, and maybe even more record breaking one day moves. Volatility has already been on the rise for GBPUSD, but as new polls are released as we get ever closer to voting day we me get a flurry of price direction changes.
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