This is absolutely massive scale, but is it so fresh? It is not. Nowadays, many people tend to forget something past so quickly as perhaps flood of information from the internet and media. Remembering just 1 year and a half ago, Swiss Franc (CHF) shot up around 15% against GBP, obviously whose scale is more than Brexit impact.
Lehman crisis had a clear message of credit market overestimated, and in fact that one biggest bank collapsed in public. So it is normal that people do not want Lehman's shares any more.
Unlike insolvent, nothing will change from next Monday for British people's life drastically. To establish Brexit deal. it will take more than 2 years.
It is clear that British economy entered the unexplored zone meaning uncertainty. Detailed pros and cons are not on the main topic of referendum, but more or less driven by populism. Further research and publication make clear that economic effect at Brexit. Even a single sentence in EU constitute may clash GBP value.
It is understandable to sell GBP as its expected uncertainty, but why they buy JPY? Looking at sovereign ratings or banking industry's ratings, there is no sign of strong-buy JPY. It had been traditionally always happened, but without economic reason, it is another sign of bended market.
As another trend, Gold price has started rising after years of downward trend.
By the way, keep eyes on Spanish election on Sunday
No comments:
Post a Comment
Note: only a member of this blog may post a comment.