Foreign Exchange Daily Market Update 12/09/2016

Mon, September 12, 2016

Volatility Slides To Lowest Since January

Even though the Pound ended a three-week run of gains, measures of the currency’s expected swings against the Dollar dropped to levels not seen since before the date for the U.K.’s referendum on its EU membership was announced, signalling that a return to normality since the June 23 vote is being entrenched

One-month pound-dollar implied volatility dropped 0.76% point last week to 8.34% as of 5 p.m. Friday, the biggest decline in a month. It reached 8.28%, the lowest since January, from as high as 32.1% on June 24, when Britain’s choice to leave the EU was confirmed.

The U.K currency has exceeded all but one its 16 major counterparts in the past month after reports from services to construction showed the economy was holding up better than some economists forecasted, marking a u-turn from when the Brexit vote and the resulting stimulus from the BOE made it the worst performer.

The Pound declined 0.3% last week to 1.3259 against the Dollar, ending a three-week winning run that resulted in a gain of 2.9%. Sterling fell 0.8% to 1.1819 against the Euro, prolonging its fall against the single currency after the ECB refrained from extending its monetary stimulus.

Data to look out for today.

Not Much Data Out Today

CURRENCY PAYMENTS MADE SIMPLE

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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