Foreign Exchange Daily Market Update 24/06/2016

Fri, June 24, 2016

Pound Crashes As UK Votes For Brexit

The U.K. voted to leave the EU after more than four decades in a stunning rejection of the continent’s post-war political and economic order, causing PM David Cameron to resign.

The Pound sunk to the lowest since 1985. The final tally, announced just after 7 a.m. London time, showed voters had backed “Leave” by 52% to 48%. The government’s pro-EU campaign was defeated by more than 1 million ballots.

Cameron said that the U.K. will wait until a new PM is in place before triggering exit talks and invoking Article 50 of the Lisbon Treaty. That will set a two-year clock ticking on negotiations.

Boris Johnson is the bookies favourite to succeed Cameron. Other potential heirs include Justice Secretary Gove and Home Secretary Theresa May. Whoever takes over is likely to seek his or her own mandate with another general election, meaning British voters may have to go to the polls for a third time in two years.

The Pound fell to as low as 1.3229 against the Dollar before trading down 7.8% at 1.3703 and still on course for its worst day on record. The FTSE 100 Index fell 6.7%. Sterling fell to a low of 1.2033 against the Euro before trading at a level of 1.2454. The selloff was compounded by the fact that markets had rallied over the past week on optimism that the U.K. would vote to stay.

Data to look out for today.

07:00: GBP Brexit Final Results

13:30: USD Durable Goods Orders

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PRESS RELEASE

KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

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