Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
GBP/USD Braced for Highest Volatility Since EU Referendum, Eyes on UK General Election

GBP/USD Braced for Highest Volatility Since EU Referendum, Eyes on UK General Election

Justin McQueen, Strategist

Currency Volatility GBP Talking Points

  • GBP Expected to be the Most Volatile Currency
  • Overnight Implied Volatility at the Highest Since EU Referendum

UK GENERAL ELECTION PREVIEW

Join DailyFX for a Special UK General Election Webinar from 0430GMT

Source: Refinitiv

GBP Expected to be the Most Volatile Currency

Unsurprisingly, given the UK general election, the Pound is expected to be the most volatile currency with overnight implied vols at the highest level since the EU referendum, far surpassing that of the 2017 general election. First indications of the election will be signalled by the exit poll at 2200GMT and thus we expect this to generate the most volatility in the Pound. That said, greater clarity on the election result will be likely known by 0500GMT as over 80% of constituencies would have declared their results by then.

*Daily Range is based on a 68% probability

GBP/USD Price Chart: Daily Time Frame: (May 2018 – Dec 2019)

Source: IG Charts

GBP/USD Bullish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -9% 6% -4%
Weekly -33% 152% -2%
Find Out How IG Clients are Positioned for the UK Election
Get My Guide

EUR/GBP Price Chart: Daily Time Frame (Oct 2016 – Dec 2019)

Source: IG Charts

GBP/JPY Price Chart: Daily Time Frame (Sep 2017 – Dec 2019)

Source: IG Charts

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES