Needless to say where the focus of the markets will be today and tomorrow with the EU referendum vote today. The polling stations close at 10pm tonight so don’t forget to get your vote in. On Tuesday, the Pound saw its most volatile day in seven years, demonstrating how much the outcome of this vote will drive the direction of Sterling. Although various polls have tried to predict where the sentiment of the British public lay and markets have moved off the back of these polls, as tonight’s results begin to hit the public, Sterling volatility will spike again.
This morning Germany will post their PMI gauges for Services and Manufacturing. Manufacturing posted an improved reading but the services figure disappointed, falling to 53.2 from a previous 55.2. The main Eurozone Manufacturing MPI and Services PMI gauges have been released, similar to Germany the Manufacturing figure was impressive but the Services figure also disappointed. This afternoon, the US will post their Manufacturing PMI which is expected to remain in line with the previous 50.7 reading. Also, the New Home Sales figure is released, if this a positive figure it will show that there is confidence in mortgage lending in the current market conditions.
As stated today, overnight and tomorrow we could see massive volatility for the Pound when signs of the results of the EU Referendum are released.