GBP: The new quality of risks - Commerzbank

Sandeep Kanihama FXStreet Contributor

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.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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