In the last few years, the United Kingdom has been preoccupied with the idea of leaving the European Union. The move that has been wittily referred to as “Brexit,” was voted on in a referendum this last weekend (June 24th).
The referendum had an impressive turnout, with nearly three quarters of the voting population in attendance. Finally, the ultimate question – to Brexit or not to Brexit? – was answered, and the Brits decided to leave the European Union in a vote that was won by a hair.
Euro versus Great British Pound – The value of this pair is affected most by how the combined Eurozone economies perform compared to the United Kingdom. Better GDP growth, manufacturing output, retail sales, and lower unemployment causes one currency to be stronger than the other. The GBP, often referred to as Sterling, is also influenced by the price of North Sea oil.Trade EUR/GBP
BDB is constantly synced with current events on the financial calendar, and there’s no wonder that in a way, its traders managed to predict the outcome. When analyzing clients’ trading behavior from the week prior to the referendum, and especially their trades on the day of the vote, it becomes clear that the British indecisiveness influenced investment decisions.
Because of the ongoing tension related to the Brexit, placing a “PUT” option on the GBP/EUR currency pair became a trading trend, and managed to provide some insight. As nearly 52 percent of British voters decided to Brexit, 51 percent of BDB’s clients followed suit, practically predicting the miniscule, but very significant, gap in Brexit results.
BDB’s commitment to staying relevant and up to date allows clients to trade on the news as it happens. Thus, it is no surprise that emerging trends among the company’s traders mirror real life events.