A Forex Trader’s Brexit Referendum Day Overview
Vantage | Jun 23, 2016 01:09AM ET
Forex markets are poised high on a tightrope between risk and safety…
The aggregated GBP/USD RAW ECN spreads (no, not standard) at Vantage FX have widened out between 4 and 5 pips, and it’s only just struck midnight in the UK!
Everything Brexit related in the lead up that needed to be written, has been written already. Do a Brexit search through the Vantage FX News Centre (click that link to bring up all the preview commentary), but as we hit voting day there is only one thing that should be on your mind as traders:
RISK MANAGEMENT!
Remember that Vantage FX have made the following close only .
Don’t get caught out making rash trading calls on a day you know is going to feature whipsawing price action and low liquidity. As a trader, you are primarily a risk manager, NOT a punter. Don’t throw your account away.
Now I’ve got that little spiel out of the way, the following table that we Tweeted this morning outlines the key referendum times that traders should make a note of if they are staying involved:
Furthermore, here are the Betfair odds for both Bremain and Brexit:
With there being so many different polls, all giving widely variable results, my eyes are on only the betting exchanges for clues as to which way the vote might swing.
You can see that the ‘remain’ vote has come right into a tight $1.30 favourite, while the price of leave has blown out to $4.10. While the price of a favourite who doesn’t win is meaningless, it does give you a few hints around the human psych of voters as voters start heading to the polls.
Next up we have the key Forex charts that are set to get wild:
GBP/USD Daily:
Get The News You Want
EUR/USD Daily:
Click on chart to see a larger view.
EUR/GBP Daily:
Cable and Fiber are gaining some momentum as the remain vote heads into the polls as a clear favourite. But as we’ve outlines above, this could change in a heartbeat and whipsawing is expected no matter the outcome.
On the Calendar Thursday:
There’s only one point of note on the economic calendar today… and it’s certainly not the US unemployment claims!
USD Unemployment Claims
Stay safe and for the sake of your long term trading account, don’t do anything stupid today!
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