This morning’s news is once again highly focused on Brexit. One of Britain’s leading newspapers “The Sun” published their headline this morning backing the leave campaign. The polls are now pointing to The UK leaving the EU with some polls showing 67% in favour of an exit. The pound continued to drop this morning against the dollar dropping 0.8 percent and signs of this bearish trend stopping are few and far between.
The question still remains on what will happen if the U.K votes to exit the European Union. What affect will it have on the EU itself, could it be the demise of the 28 nation economic Union or will it be business as usual? Unfortunately for traders and analysts we do not have the answers to these questions and a lot of EU politicians are hoping that we will never need them.
There is only 9 days left before the vote on the 23rd of June, so we can expect to see a lot more news on this over the coming days. Some analysts are drawing similarities to the Scottish referendum vote and how in the days leading up to the vote we saw a huge influx in the polls pointing towards an exit but when all was said and done, this proved to be untrue.
A market we saw move in the opposite direction to the Pound yesterday was Bitcoin. Bitcoin saw more than $120 added to its trading price due to a large rally pushed predominantly by Chinese buyers, with over 85% of the purchases made in Yuan. This is the largest rally we have seen in over two years for the cryptocurrency. Chinese investors are looking to alternative investments after comments from the IMF about the growing corporate debt in China.
With little to no signs of the debt situation improving in China, we may see a large proportion of the Yuan being invested in the likes of bitcoin and alternative investments. If this bullish trend continues for Bitcoin we should be looking at the next technical levels of $744.59 and $800.90 respectively.