Markets

CBA says the British pound could spike 2% if Brexit is delayed

Speculation is growing that Brexit may be delayed. If proven to be correct, the CBA’s Currency team expects the British pound will spike 2% in a “knee-jerk reaction”. Longer-term, the bank says the direction of the pound will largely be determined by whether the UK actually leaves the EU. Speculation […]
CBA says the British pound could spike 2% if Brexit is delayed
Markets

Markets think a Bank of England rate hike is coming

UK labour market conditions are strong and inflationary pressures are heating up, a combination that has seen markets get excited about the prospect of a rate hike from the Bank of England (BoE), potentially before the year is out. As seen in the chart below from Capital Economics, the implied […]
Markets think a Bank of England rate hike is coming
Markets

The British pound and uncertainty are clearly not friends

There’s nothing like a bit of political and economic uncertainty to spark a selloff in the British pound, as shown in the chart below from Goldman Sachs. It’s the UK uncertainty index, a construct of economists Scott Baker, Nick Bloom and Steven Davis, that goes back 100 years. Goldman has […]
The British pound and uncertainty are clearly not friends
Markets

CHART OF THE DAY: The pound has taken off

After days of relentless selling, the British pound has finally found its footing in Asia, jumping more than one per cent against the US dollar. The catalyst for the rebound, modest in comparison to the carnage seen in recent days, has come from the news that UK prime minister, Theresa […]
CHART OF THE DAY: The pound has taken off
Markets

The British pound is diving, falling to a fresh 31-year low

The British pound is getting a touch up in Asia, plummeting to a fresh 31-year low against the US dollar. As at 12.20pm in Sydney, the GBP/USD currently trades at 1.2844, down 1.34% for the session. It briefly fell to as low as 1.2801 before bouncing in recent trade. It’s […]
The British pound is diving, falling to a fresh 31-year low
Markets

INFOGRAPHIC: This is how a Brexit can be avoided

By a slim majority, some 51.9% of those who participated, voters in the United Kingdom have opted to leave the European Union. Perhaps caught up in the extreme volatility that gripped financial markets in recent days, some have mistakenly formed the view that the UK has now actually left the […]
INFOGRAPHIC: This is how a Brexit can be avoided
Markets

The British pound is getting thumped again in Asian trade

The British pound is tumbling again at the start of trade in Asia, unwinding much of the recovery seen in the latter parts of Friday’s session. As at 10am AEST, GBP/USD buys 1.3438, having traded down to as low as 1.3369 earlier in the session. It is currently down by […]
The British pound is getting thumped again in Asian trade
Markets

Betting odds on a Brexit are rising

Only a tiny amount of overall votes have been counted but “leave” is marginally ahead in the UK’s EU referendum at the time of writing. As a result markets are in a tizzy, and the betting odds of a “Brexit” are increasing. They currently stand at 30%, having been below […]
Betting odds on a Brexit are rising
Markets

The British pound is getting smoked

The British pound has just fallen off a cliff, falling close to 3% from its earlier session highs. At at 9.20am AEST, the GBP/USD trades at 1.4553, down 2.18% from Thursday’s close. The plunge coincides with a resounding victory for the “leave” campaign in Sunderland in the EU referendum. Here’s […]
The British pound is getting smoked