GBP/USD volatility ahead on EU referendum noise?

By FXStreet For the week ahead, it will be an important time for Sterling. An EU referendum date has been announced by David Cameron in Britain for 23rd June 2016 on whether to stay in the EU. While it is someway off, the pound will be under pressure due to the uncertainties that lie within such a proposal to leave the EU.

Surprises along the way, such as Boris Johnson, London’s mayor, reported earlier today campaigning to leave the EU, will give sterling traders a bumpy ride and could give momentum either way, while at the same time trying to juggle the conditions in the US and subsequent volatility in the greenback will prove a handful given cable isn’t the least volatile cross on the board at the best of times, fraught with risks in aggressive swings from time to time. It will be an interesting open for Sterling, given Boris Johnson’s popularity with the public in the UK, (tipped to be prime minister one day) his vote for a Brexit may well have transformed the referendum campaign.

US dollar and key events for the week

Meanwhile, we will turn heads in due course towards the other side of the Atlantic from the UK, …read more

Source:: FX Street