Currency Volatility GBP Talking Points
- GBP Expected to be the Most Volatile Currency
- Overnight Implied Volatility at the Highest Since EU Referendum
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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
| Change in | Longs | Shorts | OI |
| Daily | -19% | 3% | -9% |
| Weekly | -21% | 5% | -9% |
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
