Pound Traders Brace for Months of Swings as EU Vote Called
- Cameron calls vote for June 23 after securing deal in Brussels
- Measure of anticipated price swings is at highest since 2011
How to Play ‘Brexit’ FX Volatility
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Pound traders are expecting little respite from the currency’s volatility after U.K. Prime Minister David Cameron called a referendum on the nation’s European Union membership for June 23.
The pound jumped the most in more than two weeks against the dollar after Cameron finalized a deal with EU leaders on Britain’s relationship with the rest of the 28-nation bloc in the closing hours of trading in New York on Friday. Still, a measure of traders’ expectations for price swings in the pound against the euro during the next six months remained at the highest since 2011. The deal Cameron secured means he is recommending the U.K. should stay in the EU, he said on Saturday.