GBP: The new quality of risks - Commerzbank
|Ulrich Leuchtmann, Research Analyst at Commerzbank, notes that the Sterling remains under pressure post the Brexit.
Key Quotes
“While on Friday trading was dominated by relief that (1) the FX market had survived the referendum night – with an outcome that surprised market participants – without any major dysfunctionaility, that (2) hedging strategies had largely worked and that therefore incalculable losses for market participants (entailing at worst systemic consequences) are unlikely and that (3) massive immediate interventions on the part of central banks seem unnecessary (with the exception of the SNB that intervenes regularly against its own currency anyway).
However, the FX market has now been focussing on what will happen next. And in this respect uncertainty rules. That is putting pressure on the British currency.”
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