June 20th 2016: Pound Soars On Brexit Poll Hopes

• This morning the British pound is rallying and undoing much of the losses incurred over the last two weeks. The move has been sparked by an apparent resurgence in ‘remain’ votes in this week’s EU referendum. The likes of the GBP/JPY and EUR/GBP have rallied this morning.

• The EUR/GBP is rallying despite a corresponding rally in the euro, a recognition that a remain vote is a good news for the euro.

• The US dollar has gapped lower on the move, with the USD/JPY lifting off Friday’s lows as risk appetite returns.

• The risk appetite temperature can also be measured in the performance of the NZD/USD this morning.

• We’ve a quiet day ahead today, with the German Buba Monthly Report at 11.00, this morning only real highlight.

Trade Idea: 

• Volatility has dropped this morning, but with markets moving on the release of every poll, we’re unlikely to travel to sunny uplands uninterrupted.

• A good way to play this is a LOWER trade on the USD/JPY predicting that the pair will close below 104.00 in 2 days time for a potential return of 180%

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