All eyes are still on the Brexit situation
Currencies Direct June 28th 2016 - < 1 minute read
This morning, we keep following last week’s result – the implications have continued to impact markets from the beginning of the week, leaving them in a bad place. The UK Economy was also downgraded from an AAA rating to an AA, with a negative outlook by the S&P.
There have been talks of this Brexit potentially sending the UK into a recession while there is also a petition with about 3 million signatures to have a do-over of the referendum. We are now seeing the ripple effects and can expect to endure a fairly tough time of uncertainty until the UK has some solid plans in place of what to do next.
The Sterling is at its lowest
Sterling has further weakened, hitting a 30-year-low against the US Dollar. GBPEUR is also at lows that we haven’t seen for quite some time, although this hasn’t been hit quite as hard as the dollar rate.
Markets likely to be very volatile and data sensitive
Due to the aftermath of the Brexit, we can expect to see further impact on markets including increasing volatility and data sensitivity. We should keep a close eye on any new updates regarding where the UK stands and how it looks to move forward; this is where all investors will focus their attention and where the general sentiment lies.
Furthermore, today we have the EU economic summit during which EU members are due to meet in Brussels and discuss a range of global economic issues, including United Kingdom's vote to end its membership with the European Union. Following this, at 1:30, we have the final quarterly change GDP release for the US and The Conference Board’s Consumer Confidence survey released.