Brexit – sterling collapses on win for Leave

Sterling slumped to its lowest level in 31 years on Friday, June 24th, after Britons voted to leave the European Union.

GBPUSD whipsawed throughout the night, rising to a year high of $1.50 at one stage as polls initially gave Remain the victory.

But a tumultuous night of trading saw some of the biggest intra-day moves ever for the currency cross as results came in showing Leave was headed for surprise win.

Global stock markets were also rocking in the wake of the vote, with the Nikkei in Japan closing down 8%, offering a taste of things to come for European indices. In Germany the DAX plunged 1,000 points on the open.

Markets can now expect further volatility as investors and traders make more measured judgements about the outcome and the implications for financial markets.

The Bank of England immediately issued a statement to calm markets.

It said: "The 
Bank of England is monitoring developments closely. It has undertaken extensive contingency planning and is working closely with HM Treasury, other domestic authorities and overseas central banks.

"The Bank of England will take all necessary steps to meet its responsibilities for monetary and financial stability."

Added market volatility means increased opportunity but also more risk. To reflect this, ETX Capital may be increasing margin rates on certain markets.