Tuesday, May 31, 2016

The British Pound is diving after an unexpected Brexit poll result

By Elena Holodny | Business Insider
The British pound is crashing after an unexpected Brexit poll result.
The Guardian reported that a new ICM/Guardian telephone poll showed that 42% of respondents would vote Remain, 45% would vote Leave, and 13% said "don't know."
When including the results for those surveyed online and by phone, the numbers came in at 48% for Remain and 52% for Leave.
The currency was down by as much as 0.6% to 1.4551 against the dollar as of 10:52 a.m. ET.
As for the rest of the world, here's the scoreboard:
  • The euro is little changed at 1.1136 against the dollar. Consumer prices in the eurozone fell 0.1% year-over-year in May, which was a slight uptick from April's 0.2% yoy decline. Taking out the volatile food and energy prices, the core reading climbed 0.8% YoY, in-line with estimates.
  • The Australian dollar is stronger, up 0.8% to .7244 per dollar. On Monday, the Aussie dollar briefly traded near .7150 in early Asian trade before closing little changed near .7180. "Provided it holds above $0.7220 now, it can work its way a bit higher," wrote Marc Chandler, the global head of currency strategy at Brown Brothers Harriman, in a morning note to clients. "As a mile marker, note that the 20-day moving average is found near $0.7285," he added. "The Aussie has not been above this average since a downside reversal was posted on May 3.
  • The US dollar is stronger by 0.3% at 95.78. "The main narrative of increased prospects for a Fed hike in June or July has been pushed off center stage as the market reacts to local developments and investors await US economic data," wrote Chandler in a note to clients.

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