Forex trading as June 23rd is approaching fast and with it comes increased volatility in the markets, triggered by a widespread sense of uncertainty that has been building up in anticipation of the United Kingdom European Union membership referendum.
Over the past few months, the Brexit debate has heated up the forex market. We have seen GBP falling and climbing back up again, then emerging as the strongest performer among the majors towards the end of May with the general belief that the ‘remain’ campaign was pushing ahead.
With the referendum looming on the horizon, we look at how the possibility of a Brexit continues to affect currencies and what you can do as a forex trader to benefit from the anticipated market movements.
Those in favour of a British withdrawal from the European Union argue that doing so would result in a better control over immigration, reducing the pressure on public services, jobs and housing. A Brexit would also alleviate the costs of EU membership fees, enable for better trade deals and free the UK from EU regulations
Those against Brexit support that leaving the EU would risk the UK’s status and prosperity, have a detrimental impact on trade, lead to job losses and cause significant delays in investment.
“The proportion of those who still say that they don’t know how they are going to vote remains too large for the forex market to think that the result is a done deal, so there is certainly some scope for further volatility ahead.”