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Britain voted to leave the European Union, and global risk assets sold off sharply as investors moved into government debt, the yen and gold. The pound collapsed by about 18 US cents to its lowest level since 1985, and the euro fell 3.2 percent to $1.1012.
A sharp drop in sterling and the euro against a firmer dollar makes US feed ingredients more expensive for European and UK buyers in local currency and can weigh on dollar-denominated grain and oilseed prices. Safe-haven flows also raise near-term volatility across commodity markets.
reuters.comJun 24, 2016Not enough comparable past events yet for a historical read.
After 533 past bearish macro events, Euro (USD per EUR) moved a median -0.3% over 5 sessions (33% higher; middle half -1.2% to +0.2%), and -0.5% over 20.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
The UK vote to leave the EU triggered a global risk-off move in which the euro fell about 3.2% intraday, directly driving the one-day drop.
