FXCM’s Sentiment Index has tracked the trading activity of 180,000 retail FX traders and shows how traders positioned themselves in GBP/JPY, EUR/USD and GBP/USD currency pairs in the run-up to the UK referendum.
In the past few weeks, traders became more inclined to buy the pound against the yen and the dollar. Around the week of the 6th June the index showed a big jump across all three currency pairs and there’s been significant volatility in each pair.
FXCM anticipates a lot more volatility as voting gets underway and is raising margin requirements again, so the data from the Sentiment Index provides a good insight into how traders could potentially position themselves.
Back in April, Chatsworth’s research team polled over 12,000 members of the ACI Financial Markets Association, the largest global trade body representing the international currency markets, for their personal views ahead of the UK Referendum vote on 23 June.
Two-thirds (65%) of respondents believed a UK vote to leave the EU would negatively affect London’s position as the world’s largest FX trading centre, while 13% believed a Brexit would have a positive impact.