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Forexlive Americas FX wrap: UK's list of friends dwindles

Forex news and economic data headlines for the Americas sessions27 June 2016

The Brexit news keeps coming thick and fast and the pound keeps on falling. 1.3200 was the victim this time and it looked like 1.3100 might follow soon after. Cameron set his stall out for article 50. Europe wants it fast, the UK will deliver it when it's good and ready. Put that in your pipe and smoke it Merkel. The move to the low at 1.3121 came during the UK Parliament session when Scotland decided to ignore the fact it voted to stay as part of the UK to proclaim it was going to ignore the UK referendum result and stay in Europe. That wobble didn't last after everyone stopped laughing and we pushed back above 1.32 as Cameron tried to steady the ship with calm comments. 1.3150/1.3200 has been the range since then. The pattern of calm periods interspersed with periods of volatility is likely to continue.

EURUSD followed the pound down again and dropped through 1.1000 to 1.0971. It's not done a lot since recovering back above the 1.1000 level.

USDJPY bottomed not long after the US open at 101.41 and then made a slow climb back up through 102.00. US stocks followed Europe down the hatch and although they've grabbed some ticks back, we're far from turning things round completely in the last few minutes of the trading day. There looks to be an asset shift out of stocks to bonds as Treasuries, Gilts and EU bonds all find willing buyers as stocks find willing sellers.

UK traders might have the hump in the morning if the current score of the England vs Iceland game remains at 1-2. It never rains but it pours.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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