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UK vote to leave shocks financial markets

Last updated: May 3rd, 2017 at 09:58 pm

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.

UK vote to leave brexit result gbp usd

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!

UK vote to leave gbp usd chart

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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.