As we start the trading week, everyone is fully focused on Brexit. We have 3 days to go before voting starts and it is estimated we will have our result by Friday morning. So strap in for a hectic end to the trading week
Investors were greeted to headlines this morning showing that the remain vote seems to be growing momentum and is starting to claw back the gap between the leave and remain vote. The European equity’s were first off the starting block this morning with the FTSE 100 up 2.3%, a strong show of what is to come if the UK remain in the EU. The GBP/USD was up 1.6% respectively but we could see this move further as the morning progresses.
Wolfgang Shareable has come out and said that the EU have already drawn up contingency plans to protect the EU if the UK do decide to leave. It looks like the EU are trying to give a strong reminder to the UK leave voters that the EU will do everything in its power to curb any damage an exit vote may have on the EU and would more than likely be willing to make an example of the UK with strict restrictions to the UK’s trade and the removal from the EU single market.
We are in for a very volatile week surrounding the pound and Euro equities. This could prove for some very strong moves across markets which traders could take advantage of. While this week could lead to some positive trades, remember to keep up to date on the polls and news as although there will be strong moves to both directions, we could see directions in the markets reverse rapidly with news coming out of the UK and EU quick and fast. Remember to keep your trading account well deposited and your trading positions relative to your account balance over this exciting week.