Risk sentiment sours – as expected – as the potential ramifications of the Brexit vote reverberate through the market.
Losses in the equity markets have accelerated since the open of Wall Street, with the S&P 500 now eyeing the psychological 2000 mark.
USD/JPY still holding the mid 101.00s, in what looks to be fear-induced support – the BoJ/MoF sure to be monitoring the daily price action. The SNB have admitted market operations, but this has only managed to contain the losses in EUR/CHF, which has been camped below the 1.0800 level through the day.
As for GBP, further losses are on the cards after the London am session saw the Friday lows extended through 1.3200, and although finding some near-term support ahead of 1.3150, the lack of any meaningful recovery suggests were are set for a move closer to 1.3000 soon. EUR/GBP has extended the upside to a touch over .8350, and again here, the pullback is extremely shallow as of yet.
AUD and CAD are both struggling against the greenback, with the latter now pushing through 1.3100 again as oil prices are back on the slide. AUD/USD managed to tip .7500 on Friday, but we have since drifted back under .7400. Sub .7300 would see us below the post Brexit lows, so the high(er) yielder – along with the NZD – looks to be faring better at the present time.