John J Hardy
The UK’s exit from the European Union is causing volatility in GBP, says Saxo Bank’s head of FX strategy John Hardy, and may be the start of a squeeze on sterling pairs.
Editor’s Picks 24 June 2016 at 2:34 GMT

S&P 500 futures fall as Remain barely leads in early UK vote count

US stock index futures dropped late on Thursday as early voting returns suggested Britain was on the verge of leaving the European Union, a move that investors fear could hurt the global economy. S&P E-mini futures fell as much as 2% in after-hours trading before paring losses to trade down 1.2%. Early results from the referendum showed margins were nail-bitingly tight, with the "remain" camp leading by less than 1 percentage point with about a quarter of voting areas counted. USDGBP fell as low as $1.4351, more than wiping out its earlier gains, which had lifted the pound above $1.50 for the first time this year on the back of a YouGov opinion poll that suggested Britons had voted 52-48% to stay in the EU. Reflecting nervousness among investors, futures on the VIX volatility index rose 1.3 points to 17.9. "Big institutions were clearly caught off guard. This has a panic type of feel to it," said Adam Sarhan at Sarhan Capital in New York.
Read full article at Reuters


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