22 June 2016 at 13:45 GMT
- Risky currencies recover
- Markets pricing in Remain vote
- Brexit would pose a 'considerable shock'
One more night until the Brexit votes are counted. Photo: iStock
By John J Hardy
Currencies correlated positively with risk recovered modestly today, as did the pound and euro as the market has significantly written down the risks of a Brexit vote tomorrow.
This makes the potential reaction even more asymmetric than it was previously, as a Brexit at this point would be a considerable shock. The FX Board will return on Friday as we await the referendum verdict and the initial reaction.
Please note some levels of interest in the attached FX Board PDF attached as we await the market's reaction.
— Edited by Michael McKenna
John J Hardy is head of FX strategy at Saxo Bank