Brexit Approaches

On June 23 2016, UK residents will take part in a referendum to decide whether or not Great Britain will remain in the EU or leave European Union membership state.

During the build up to this event, experts are predicting that the markets will display increased volatility as there is widespread uncertainty as there is no clear signal of the actual outcome following a series of polls and opinions.

Over the past few months the financial markets interest is intensifying with more and more traders focusing on the referendum and we've seen the GBP lose value against the US dollar, and then gaining some losses back, towards the end of May, the GBP was the best performing of all the majors with rumours that the "remain" camp was ahead in the polls.

The conditions seen on the GBP/USD major currency pair have generated ideal conditions for Scalpers and Day Traders with many taking advantage of the volatility and opportunities presented.

As the referendum approaches, we expect the markets to continue to be affected, with the added interesting US dollar scenario developing following horrendous NFP results in Friday and the Feds decision regarding rate hikes also possible, the next few weeks will be very interesting for all traders.

To keep on top of the latest economic data and news releases head to the Trading Tools section of our site. For Scalpers and Day Traders, take advantage of super-low spreads on the famous Scalper account.