30 Mar 2016
Brexit spilling over to real economy yet? - Scotiabank
Shaun Osborne Chief FX Strategist at FXStreet explained that the GBP has failed to emerge from the shadow of the “Brexit” debate to take fuller advantage of the weaker USD.
Key Quotes:
"Market pricing suggests insurance against downside risks in the pound through the June 23rd referendum is becoming more expensive (3m risk-reversals are showing a massive 4.5 vol premium for GBP puts over calls)."
"Business sentiment and consumer confidence data due later tonight will show whether the “Brexit” issue is spilling over into the real economy or not.""
Key Quotes:
"Market pricing suggests insurance against downside risks in the pound through the June 23rd referendum is becoming more expensive (3m risk-reversals are showing a massive 4.5 vol premium for GBP puts over calls)."
"Business sentiment and consumer confidence data due later tonight will show whether the “Brexit” issue is spilling over into the real economy or not.""