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Stronger-than-expected support for Brexit in UK referendum results roiled currency markets, sending sterling to its lowest level since 1985. The euro and higher-yielding currencies such as the Australian dollar, New Zealand dollar, Mexican peso and South African rand fell, while the yen rose past 100 per dollar.
Weaker emerging-market and commodity-linked currencies can lower the local-currency cost of some exports, but broad risk-off moves raise volatility and can pressure dollar-quoted feed prices. The stronger yen also affects Japanese demand for imported feed.
bloomberg.comBenjamin Purvis, Narayanan SomasundaramJun 24, 2016Not enough comparable past events yet for a historical read.
After 533 past bearish macro events, EURUSD moved a median -0.3% over 5 sessions (33% higher; middle half -1.2% to +0.2%), and -0.5% over 20.
Not enough comparable past events yet for a historical read.
After 2,356 past bullish macro events, DXY 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 Brexit result roiled currency markets and the euro fell along with other risk-sensitive currencies, a currency-sentiment channel.
