GBP Futures Open Interest: Long Liquidation Post ICM Brexit Poll
Preliminary data from the CME Group
shows that futures traders withdrew liquidity during yesterday's 6B
slide (GBP/USD), following a built-up of long-sided business in the
Sterling market in anticipation that the 'Bremain' campaign was getting
well ahead of the 'Brexit', according to recent polls. However,
yesterday's most recent poll conducted online by ICM revealed a
concerning 47% Leave vs. 44% Remain, rasing fears of a potential UK exit
from the EU.
GBP longs run to the exits afer ICM poll traps a long market
The decrease in open interest on Tuesday, May 31st, was of nearly 3.4k contracts being closed in a day that concluded with a commandng bearish outside day, communicating that the sharp fall was being fuelled by GBP longs closing positions, also known as a long liquidation.
The Pound is likely to continue being driven on a Brexit poll-by-poll basis, with traders adapting to the ever changing Brexit opinion poll results. Even ahead of the latest ICM poll yesterday, the odds of Brexit had come in for the Leave campaign, from over 5/1 to leave its 100/30.