Shocking Brexit sends Sterling tumbling
- EUR M3 Money Supply y/y: 4.9%
- EUR Private Loans y/y: 1.6%
- USD Goods Trade Balance: -60.6B
- USD Flash Services PMI: 51.3
Sterling has continued to fall on the shocking Brexit result and implications of those results (Cameron resigning, a probable rate cut and another resignation possibly from Labour leader Corbyn). GBPUSD has depreciated by nearly 4% from Friday’s close, posting fresh lows as well as the risk averse trend continues.
This morning, Chancellor of the Exchequer George Osborne released a statement. The statement was designed to calm markets after the surprise Brexit vote triggered turmoil on Friday. Osborne said “it will not be plain sailing in the days ahead, but we are prepared for the unexpected and we are equipped for whatever happens”. The statement unfortunately was not enough to settle investors’ nerves and further instability and volatility is bound to continue. Sterling remained lower after the release of Osborne’s statement.
- EUR EU Economic Summit
- USD Final GDP q/q
- USD CB Consumer Confidence
- CHF Gov Board Member Zurbrugg Speaks
- USD FOMC Member Powell Speaks
- JPY Retail Sales y/y
US GDP will be today’s main focus. First-quarter GDP rose at a 0.8% annual rate, according to the second estimate from the Commerce Department, the weakest performance since the first quarter of 2015. It is expected to be revised down to 0.6% in this third reading. Markets will also keep tabs on day 1 of EU economic sentiment, any mention of the Brexit could cause further volatility for the Pound.