So, Brexit is confirmed and the UK has voted to leave the EU in a move that has shocked financial markets. However with the huge volatility means that trading with any assurance today will be extremely limited. The high to low range on Sterling/Dollar has been 1,794 pips to the low at $1.3224 which is the lowest level on Cable since 1985.
However, sterling is bouncing, already almost 600 pips off the lows. The question is whether to trust the bounce. Trading today will be extremely difficult and there will be winners and losers. It is impossible to say where Cable will finish today, or even in the next few sessions. The market will move off different stories throughout the day, however the true ramifications of the decision are yet to play out.
My feeling is that the bounce may now last and renewed weakness could be a real issue as the US session kicks in. Whatever happens, a real roller coaster of a ride will be seen.
Once the dust settles we can gauge more of a genuine outlook for markets, however, in the meantime, expect market volatility to continue . I can only really say, good luck, as I think we may well all need it!
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