Article / 28 June 2016 at 10:30 GMT

Daily Shot: Braftermath Team / Saxo Bank
  • GBPUSD sinks further to multi-decade low
  • FTSE 250 index hammered by post-Brexit sentiment
  • Poland seeking second referendum for UK

By Walter Kurtz*

We begin by revisiting the situation in the UK, starting with some market developments.

1. The British pound took another hit Monday morning, reaching a multi-decade low. The currency was recovering slightly as of early Tuesday morning. We are in uncharted territory.

To put this dislocation in perspective here is Friday's GBP move compared to other markets. 

Quantifying the shock
2. The FTSE 250 index, which has less international exposure than the FTSE 100 (and thus more exposed to the UK economy), got smoked. 

FTSE 250
3. We saw a spectacular selloff in Barclays Bank shares – two days in a row of 17%-plus declines. RBS shares didn't do much better. Some view this as a buying opportunity. 

Bank shares
4. The 10-year gilts yield hit a record low falling below 1% for the first time.

Next, let's take a look at a few headlines.

1. Central bankers are nervous. 
Central bankers
2. Scotland's leadership is rather upset with the EU referendum outcome.
3. Poland is asserting itself with the EU, asking the bloc to adjust its rules with the hopes to bring the UK back under a different set of conditions.
4. S&P pulls UK's AAA rating.
— Edited by Michael McKenna

* Walter Kurtz is an alias

** This is an abridged version of the Daily Shot. To subscribe to the full version, link to the Daily Shot and select the appropriate command. E-mail addresses are never shared with anyone


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail