Leave Camp Heading to Victory as GBP Drops to 30 Year Low

The pound dropped more than 10 per cent to its lowest level in three decades as the market awoke to the realisation that the Leave camp appeared to be heading for victory in the UK referendum on EU membership.
Dramatic falls in sterling peppered market trading early on Friday, wiping out earlier confidence from exit polls that suggested the Remain camp would prevail.

GBP after Brexit

So acute was market uncertainty as early counts came in that sharp falls were quickly followed by equally severe rises, until the market lost faith in the pound with around half the votes counted.
A stunning slide in sterling at around 3.40am London time saw the pound plummet below $1.40, and 20 minutes later it had breached $1.35 to levels last plumbed in the Thatcher-Reagan era.

That sparked a record 11.4 per cent cent intraday range for the pound, smashing the 6.5 per cent from October at the height of the 2008 financial crash and the 4.9 per cent range on Black Wednesday in 1992.

via Financial Times

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza