Currency

According to James Butterfill, Head of Research at ETF Securities comments, Brexit is the mother of all market uncertainties: legal, political, economic, polling and currency risk combining to make any confidence about the short-term outlook foolhardy...

As yet, sterling appears not to have reacted to the looming referendum on the UK’s continued membership of the European Union. Over the short to medium term, however, the currency should end up reacting negatively, so great is the fallout for the British economy. In particular, one would expect the volatility displayed by sterling to pick up at the start of 2016, bearing in mind that opinion polls are very tight...

Barclays read recent Chinese measures as evidence that officials are accepting that the country’s growth trend has been hit by the build-up of imbalances that can no longer be sustained. Barclays’s analysts think that a lower Chinese growth trend, more than the cyclical slowdown, opens interesting opportunities for FX markets in the months ahead.

Salman Ahmed, LOIM’s Global Strategist, has commented on the Swiss National Bank’s policy update this morning. He discusses the implications for the Swiss currency and the wider impact on the eurozone economy.

According to John Chatfeild-Roberts, CIO of Jupiter Asset Management, over the past decade, we have seen several longer term trends play out, from swift urbanisation in developing nations to technological advances everywhere. Changes in currency trends have also had an impact on economies and stock markets, in particular the directional changes in the world’s reserve currency, the US dollar...