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The prospect of a Brexit will drive market fears next week


We are now into the final week of the campaign for the UK’s EU referendum. A long and arduous slog finally comes to an end and we will find out whether the UK chooses “Remain” or “Leave”, and as we approach polling day, the decision could not be tighter. The prospect of a Brexit is driving market fears and is having an incredibly volatile impact across asset classes. Increased attention is now being given to individual opinion polls and the markets are spiking higher and lower. Also, incredibly now the average polls (or poll of polls) are now actually pointing towards a possible victory for Leave. The murder of an MP seems to have shifted the sentiment once again, but there are likely to be more twists and turns in the final few days of campaigning. Market reaction will be significant and we spend much of the report this week looking into the impact that the Brexit vote could have on markets. We also look at the economic calendar for other events that could move markets this week.

We consider how forex majors could shape up in the event of a Brexit. Sterling will clearly be a big mover, but what are the other currencies to watch, as there will also be relative winners and losers to watch out for. We look at the impact on the charts of Euro/Dollar and of course Sterling/Dollar. Also, how are equity markets likely to react this week? Clear focus will be on the FTSE 100, but what of the DAX and also Wall Street? We take a technical look at FTSE 100 and the German DAX. And also what of the key commodity markets, with the safe haven gold sure to also react, along with oil. Bond markets are also set to make some key moves. We look at the charts of Gold and Brent Crude oil.

 


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At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.