Profit: -$3.42 Total: $1,295.98
Brexit contagion seems to be just getting started when three of the largest UK property funds, Aviva, M&G Investments, and Standard Life Investments, froze their redemption due to money shortages. This is $12 billion in assets that are halted since the companies do not have enough money to give back to investors. The news broke out overnight which gave GBP/USD a steep drop, breaking the 1.30’s. Risky assets such as oil followed the plunge while safe havens such as the Yen had a nice rally. Investors are speculating that this is the start to Britain’s financial melt down all due to Brexit.
Although the market was well and alive, I wasn’t use to the extreme volatility. I wanted to hop on the GBP/USD bear train but couldn’t catch a nice bounce to enter. My executions were sloppy which made me fickle, and my hesitation on trades made it too late enter. FOMC is tomorrow and it can easily change the course of dollar’s path if Yellen mentions any hints of a cut. There’s talks that the next hike isn’t due till next year so it’ll be interesting to see how Yellen sees Brexit.