USD/CAD Plummets As Brexit Becomes Reality
MarketPulse | Jun 24, 2016 01:45AM ET
The USD/CAD is headed to break the 1.31 level as the Brexit outcome becomes a reality. Betting odds and investor sentiment were caught wrong footed as this time the polls were near the pulse of the electorate.
Gold and other safe haven assets have risen after risk aversion has been triggered by the victory of the Leave camp. The GBP is at 30 year lows and there are major shockwaves around the world as markets begin to price in the new reality. Uncertainty on what the next steps are for the markets after the UK has voted to leave the European Union.
The historic referendum brought to the surface the deep tensions that have divided the British people and have now come to a democratic decision to reclaim their sovereignty by leaving the European Union.
Central banks around the world will be on alert as the Leave camp wins. The Bank of Japan has already emailed plans for extending swap lines to provide liquidity and keep the JPY from rising as investors covet the currency as a safe haven.
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