Video: Where Do GBPUSD and the Pound Go Post Referendum?
• One of the most troubling risks the Pound has faced in years - the Scottish Referendum - has passed
• Yet, despite the collapse in uncertainty and risk premium (volatility) the Sterling didn't rally
• In the wake of this high-profile event, we discuss what to watch to trade the Pound moving forward
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Crisis adverted. The ill-defined and systemic risk the Scottish Referendum posed to the UK and Pound has passed without sending the FX market into a panic. With the fear of an economic and financial disaster evaporating, we saw implied volatility levels drop substantially. Normally, such a move would spur a rally for the Sterling and GBPUSD; but that wasn't the case this time around. Currency and pair both tumbled to close out the week. A relief rally seems not to be the order of the day. So, what should we look to to gauge our Pound trades going forward? That is the topic of the Weekend Strategy Video.
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