Friday afternoon saw chaotic trading in GBPUSD (cable) as headlines flip-flopped before finally settling on a “deal” had been agreed between Cameron and The EU. Hope was high that this was a positive for “staying in” and cable rallied. But that has been dashed on the shores of Boris Johnson as London’s mayor will campaign to leave the EU sending GBPUSD down 120 pips at the open.

Just as we warned: “If Johnson refuses to back Cameron, the Friday afternoon spike in the GBP may be very promptly undone.”   

Other Brexit risk indiators remained at record highs into Friday’s close…

FX Volatility butterfly…

And credit spreads…

We will see how they open late this evening.