Pound Volatility Hits Record High Ahead of Brexit Vote

June 14, 2016

The pound looks so fragile now as Brexit worries continue to pervade. The currency fluctuated on Monday between losses of 1% and gains of 0.5% and the implication from a two-week measure shows that its volatility has reached the record level.

Brexit is there to blame. “Everything is about Brexit right now,” said SEB AB trading strategist Richard Falkenhall. “Speculative accounts have added onto long dollars and long yen positions. At the same time, people are adding to shorts in the pound and in the euro. When you watch the polls they’re tighter than they’ve ever been. So there is a lot of uncertainty out there at this point.”

The pound may dive to a three-decade low in case of a Brexit, according to a Bloomberg poll. The U.K. currency still dominates the discussions of currencies affected by Brexit among the financial crowd.

Brexit GBP 2

Different poll results from ICM, YouGov, Opinium, ORB as well as the FT’s Brexit tracker show that the number of Brexit backers are rising. Yet both sides are still gaining more support and it is hard to tell which will prevail.

Brexit Briefing continues to deliver what 2.8 million financial market relevant voices are talking about Brexit.


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